Well, 2018 is off to a ruff start. Today’s market action seems to confirm what I’ve been thinking for a few days now– we are in a bear market. Maybe, maybe not– but it sure FEELS that way.
Why is Crypto– both Bitcoin & Altcoins– falling? Here are a few suggestions:
- People waited for the new year to sell for tax reasons.
- Continuously negative Crypto news from Asia.
- Increased awareness of Crypto taxation. Governments may not be able to stop Bitcoin– but they sure can tax it!
- Unclear rules regarding taxation– How to calculate? How to report?
- Realization that 2017’s massive gains are simply not sustainable.
- Realization that
manymost Alt-coins have no, or very little, real value.
- Realization that it may be a long time before any Cryptocurrency is adopted by the masses for regular day-to-day use.
- Scaling and other technical issues.
Personally I’m convinced we have entered a bear market. The real question is how long will the bear market last and how far will prices plummet?