Call it the crash before the crash. As of this writing, bitcoin has crossed a significant psychological level, below $ 30,000. Dogecoin is down over 20 percent and can now be bought for 17 cents.
A number of other cryptos are also in free fall. But bitcoin and Dogecoin may be the main poster children, one might say, for the manic ups and downs that have become a hallmark of cryptos.
As for the crash, a Dogecoin-themed car crashed during the NASCAR Xfinity Series race in Tennessee this weekend. By sites like Yahoo! Finance, the word “foreshadowing” often appears. But we do note that the presence of a Dogecoin-themed car on the run in the first place signals a bit of âjumping the sharkâ for cryptos. It appears that the coin emblazoned on a car and commemorated in what is arguably one of the most popular sports in the country is a nod to the general public – that is, all of it isn’t. isn’t it a bitâ¦ surreal?
Yet, there are some very real, fundamental issues disrupting crypto that no amount of pop culture can fix.
The very means of the bitcoin product are under fire. And the very (big) promise of cryptos to become the mainstream as units of currency and trading is pushed back a bit when we see 20% spikes or dips highlighting volatility that could make consumers (and certainly regulators) suspicious.
As reported in this space, China has cracked down on bitcoin mining in the country. As of last week, all cryptocurrency mining operations have been shut down by officials in Sichuan, after the State Council decree in May to stop bitcoin mining and trading.
This is a big decision, because around 50% of bitcoin production (via hardware and software, of course) comes from China. Close this offer, and there is less bitcoin flowing, which could (possibly) support the price, due to the scarcity value, but suspend the trade – and then it’s just something that’s prohibited. Indonesia, in particular, has also banned crypto as a payment tool.
China’s own crackdown is also using big banks to enforce the law, as the financial services industry has been banned from providing crypto-related services. A sign of China’s intention to put crypto aside and bring its own digital yuan into the mainstream, the country’s public banks allow customers to exchange digital yuan and yuan for cash at ATMs . The flexibility to switch between payment methods could make consumers more comfortable using digital offerings on their own schedule.
There are also other signs that the allure and enchantment of cryptos may be waning. Investors and speculators are voting with their feet, you might say. Case in point: Coinbase trades as an ‘exploded’ IPO. Earlier this year, the company ended its first day of trading at $ 328 and had reached over $ 380 in intraday trading; Tuesday (June 22), he changed hands at $ 211.
Earlier this month, Yahoo! Reported Finances that crypto exchange exits are at heightened levels, where, according to thought, a bottom is forming for trading and pricing. Yet this new wave of sales and continued volatility (along with downward pressure on prices) may indicate that the bottom is not in.
As for that Dogecoin car crash, the joke piece looks more like a prophet of things to come.