Modern Economic Nonsense — Bitcoin leads the market recovery

The cryptocurrency market continued to see red 📉 after the recent sell-off. Bitcoin dropped almost 70% from its all-time high of $69,000 in mid-November, while the overall cryptocurrency market cap shed approximately $1.9 trillion. However, prices are showing signs of recovery. The total market cap has tanked below 1 trillion, with bitcoin accounting for almost half of the value. The recent price fall also makes investing in cryptocurrencies cheaper for new investors looking to enter the market. As Warren Buffett says: “Be fearful when others are greedy and greedy when others are fearful.” Here is a brief analysis of what led to this correction and what we expect going forward.

What’s Caused The Recent Correction?

The most obvious trigger for the recent sell-off was the bear market downtrends and inflation, plus the announcement from the Securities Exchange Commission that it would be reviewing whether the trading of cryptocurrencies should be regulated as securities. The theory is that if the SEC were to decide that cryptocurrencies are securities, then it would have the power to end the current Wild West approach towards the sector and impose stricter rules related to financial disclosure, company governance, and investor protection. If the SEC decides that cryptocurrencies are not…