Crypto market wiped out over the weekend amidst scams, tweets, regulatory crackdowns, and possible taxes

24 May 2021

???? BTC | $35,632 (-1,728, -4.6%)

???? ETH | $2,185 (-115, -5.0%)

???? XRP | $0.81 (-0.09, -10.1%)

???? LTC | $148 (-25, -14.3%)

Buyers of the dip were rudely awakened over the weekend as Bitcoin dumped progressively lower, to hit a low of $31K earlier this morning. Bitcoin is now up only around +23% for the year.

The latest series of negative news has centred around China’s regulatory action against Bitcoin and Bitcoin mining. Our take? Nothing has changed with China’s stance on Bitcoin trading. Nonetheless, stablecoin outflows in China are sharply increasing, as Chinese investors appear to be converting their positions into RMB, likely to avoid a potential crackdown on peer-to-peer trading.

However, Bitcoin mining has long benefited from cheap (and dirty) energy prices in some regions in China, making the country the largest Bitcoin mining hub in the world. As China cracks down on energy-intensive activities, miners are progressively looking to migrate elsewhere to continue their activities. As long as Bitcoin’s price remains attractive (you stand a chance of receiving 6.25BTC every 10 minutes), it is likely we will soon hear of new mining hubs springing up elsewhere.

A Binance Smart Chain (BSC) project (Defi 100) may have turned out to be a scam, with the website exhibiting a message stating as such. Estimates place investor losses in the tens of millions. BSC is often touted as a competitor to the Ethereum network for its lower fees and faster transaction speeds.