Tweet Sends Crypto Market Crashing - Real or Fake ?
John Barry | Sun Apr 18 2021
At 10:42 EST the following tweet was made by an account called FXHedge @Fxhedgers
The Cryptocurrency Market reaction was fast, as Bitcoin and many altcoins dumped quickly. At the time of the tweet Bitcoin was trading ~59,600; already down about $2,000 from the daily high. Some seemed to believe this rumor before the tweet came out. Bitcoin proceeds to dip down to a low price of $51,239 on Coinbase. A decline for the day of over $10,000.
Many Altcoins had larger percentage declines. For example $AAVE sent from a daily high of $450 to a low of $314 on the Gemini Exchange a 30% dip. Many altcoins hit their lowest price in April during this broad dip.
Can we be sure this rumor is really true ? Investigating a single firm of money laundering takes time and a large commitement. To hear multiple investments firms are being charged at the same time ? Seems like a stretch. How big are these investment firms ? Reading this rumor makes a person jump to the conclusion it would be major firms, I doubt this will be the case, I have no idea.
In fact Janet Yellen recently state concerns about the use of Cryptocurrencies. Here is an article the details thishttps://www.financemagnates.com/cryptocurrency/news/cryptocurrencies-have-been-used-in-money-laundering-says-janet-yellen/
Anyway I took the opportunity to buy the dip.
A final point, why is this such bad news. Fiat, bank transfers, gold and other assets have been used for money laundering. When was the last time the US Dollar when down due to money laundering? Bitcoin leaves a trail, which helps track down illegal activity.
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None of this is meant to be financial advice and I do not have any financial expertise. Although I worked at the New York Stock Exchange for over 23 years, it was as a developer supporting computer systems, not as a stock trader.
Full discloser: I do own Bitcoin, AAVE, Uniswap and other cryptocurrency positions.