Bitcoin crumbles below $40,000 on China crypto warning

jmilcher said:
But it does shake the very core of what crypto was meant to be.

I just read today the current administration is considering federal law requiring all transactions totaling $10k or more be report, just like at fiat banks. The IRS was a listed source, citing their interest in a untapped potential of billions of dollars in tax to be collected.
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That's going to happen for sure. It was inevitable really.
 
Zeoclang said:
Unlikely. GPU mining really started to take off earlier this year when ETH started to climb above $1000. After this crash ETH is around $2500. Cards won't plummet in value until mining is unprofitable.
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Well, as with all cryptocurrencies it gets increasingly computationally difficult to mine over time.

I'd imagine over time he breakeven value of Ethereum will rise. Who knows how long that wi take though.
 
LFaWolf said:
I wasn't sure about the tax so I didn't put it in but since we both think the same way it must be right :ROFLMAO: IRS wants the money.

No "income" tax and penalty?
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Not if you don't sell. You use the dollar value of your retirement stocks as collateral. I did this to buy an air conditioner and furnace.
They put the money in guaranteed bonds and each monthly payment put back roughly that much into my stocks. They get a tiny interest payment that is negligible.
I have Tiaa but it should be similar with other places.

I think i can only do it once per calendar year though.
 
arnemetis said:
I managed to catch this one and bought the dip, already up 12%. Maybe it will go down more, maybe it bounces back, who knows. Never invest more than you are willing to lose.
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Exactly. I've never invested in anything in my life but decided to dump a few hundred in Doge a few weeks back. I'm DEFINITELY down a few but, meh, fuck it. Maybe it'll play out, maybe it won't. It's been long enough that the money I have in it doesn't really matter either so I'm just riding the wave...
 
Manny Calavera said:
This.Above.1000%

Jekyll Island 2.0/Bretton Woods 2.0 is almost here. The great casino at the top of the pyramid is about to pull everyone's chips OFF the table,and all FIAT is about to go POOF. USD is going to lose its status and be replaced,those not into crypto will be in a world of hurt. Wife and I converted our entire 401k to Crypto in 2018,not looking back. See the agreement Russia and China just made on Oil,etc? A lot more of that is coming from other Nations soon. All the warning signs are there....if you know where to look. People here laughed at me when I warned of huge inflation in Gpu's,and other purchasable items,last summer before the cards even launched. The Great Reset is here,now,happening in front of us all,but 99% are stone blind.
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Any country that gives its citzens an actual reason to need Crypto will fall so hard and so fast people will be trading with bread cuz theres no fucking electricity.
 
Balkroth said:
No, you have to pay it back of course, I think it's like 10 years to pay back and with interest (but you're paying yourself back, so who cares). You don't get that tax until you remove it from the 401K , loaning acts differently.
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Yep. Never withdraw lump sum from your 401k. I have done loan to myself a few times, not to buy cypto ofcourse but for other shit. Sometimes i pay it back fast but sometimes I just pay it over time. You are just paying yourself back with interest so why borrow from anything else lol.
 
idiomatic said:
If I don't declare income I don't have to pay tax, because the government doesn't know about the internet.
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I'm not telling anyone to break the law. This is actually a thing people do. I promise.
I can switch funds in my 403/b without triggering a sale. The rules are different. I don't know why, but they are.


Here is a clip from fidelity. Not that I have fidelity, just a generalization.
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ETH is down 18% this morning and a Founder's 3090 sold for only $3,000 on eBay yesterday!

Perhaps the bubble is bursting.... or perhaps it's just a good time to buy ETH! Fun times in the market of pure, wild speculation.
 
NukeDukem said:
ETH is down 18% this morning and a Founder's 3090 sold for only $3,000 on eBay yesterday!

Perhaps the bubble is bursting.... or perhaps it's just a good time to buy ETH! Fun times in the market of pure, wild speculation.
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ETH was at $400 when the 3090 launched and it has never been in stock for longer than a few minutes.
 
NukeDukem said:
ETH is down 18% this morning and a Founder's 3090 sold for only $3,000 on eBay yesterday!

Perhaps the bubble is bursting.... or perhaps it's just a good time to buy ETH! Fun times in the market of pure, wild speculation.
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Na. eth also went from 400 to like 170 in 2017. Its all part of the cycle. Don't be surprised if late Q4 we are going towards a blow off top and that is when things will cool down for a year or two. Eth is going staking anyways so that will help as well.

This time its so much worst is not only because of mining but also Silicon shortage, that is a real thing effecting the entire industry. Which is making it worst. if we weren't hit with Covid I think things would have been a little better as well.
 
If you are not sure if this is a bubble, if it is going lower, or going higher, i really suggest you learn some TA on charts and follow reliable sources who are TA experts and been in the market for some time.

BTC is likely to have sideways movement in the $30k range for several months now. The bull run ending end of 2021 may be postponed because of all this Elon and China FUD crap...

Some are concerned BTC could drop into the $20k's range breifly but $30k range seems to be holding so far, but the weekly candle ends soon so lets see where we got from here.
 
MrGuvernment said:
If you are not sure if this is a bubble, if it is going lower, or going higher, i really suggest you learn some TA on charts and follow reliable sources who are TA experts and been in the market for some time.

BTC is likely to have sideways movement in the $30k range for several months now. The bull run ending end of 2021 may be postponed because of all this Elon and China FUD crap...

Some are concerned BTC could drop into the $20k's range breifly but $30k range seems to be holding so far, but the weekly candle ends soon so lets see where we got from here.
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This is very, very optimistic.
 
obs said:
So what changed so much to make it worth $10k 8 months ago and 30-60k now? Yes, I think the 10-20k range is pretty likely for it to fall to for a while
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well if you do believe this is beginning of bear market already then think about this. Bitcoin has never in its history dipped below previous high. That is why I think this is just wave 4 of larger cycle, if you read up at seeking alpha, they were calling it in April. It was pretty much nailed by them that BTC is due for large correction in wave 4 in the range on 30k.

Truth is no one knows but bitcoin bull cycle typically lasts longer if this is it it will the shortest in history but this has similarities to 2013 bull cycle, where similar situation happened and Bitcoin then went on to moon in Q4 after few month sideway action.

If this is wave 4 then expect the Top to be around 160k+ never now how loco wave 5 can go but the end of it is usually crazy fast and blow off top type.

if I had to guess I think we may retest 30k again after some sideway action and then bull run will remain and Q4 - Q1 2022 will be fireworks.
 
NKD said:
well if you do believe this is beginning of bear market already then think about this. Bitcoin has never in its history dipped below previous high. That is why I think this is just wave 4 of larger cycle, if you read up at seeking alpha, they were calling it in April. It was pretty much nailed by them that BTC is due for large correction in wave 4 in the range on 30k.

Truth is no one knows but bitcoin bull cycle typically lasts longer if this is it it will the shortest in history but this has similarities to 2013 bull cycle, where similar situation happened and Bitcoin then went on to moon in Q4 after few month sideway action.

If this is wave 4 then expect the Top to be around 160k+ never now how loco wave 5 can go but the end of it is usually crazy fast and blow off top type.

if I had to guess I think we may retest 30k again after some sideway action and then bull run will remain and Q4 - Q1 2022 will be fireworks.
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Don't own even a fraction of bitcoin but if it falls anywhere near 20K, im buying 1 or 2 and holding it and hoping for it to hit 100k or close to it. I've done dumber things with that amount of money and if this even has a slight chance of happening, im in.
 
Iirc, the total bitcoin pool is only 21 million or so and over 17 million have been mined already.
So the Chinese action should be quite bullish, it simply cuts the potential bitcoin supply by about 20%.
 
etudiant said:
Iirc, the total bitcoin pool is only 21 million or so and over 17 million have been mined already.
So the Chinese action should be quite bullish, it simply cuts the potential bitcoin supply by about 20%.
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yea overall very healthy for crypto. China can go ban mining. Lot of hash rate has been moving out of China over time overtime anyways and will continue I think. So it’s only a matter of time. China can’t really do shit if they have nothing to do with anyways lol.
 
bizzmeister said:
Don't own even a fraction of bitcoin but if it falls anywhere near 20K, im buying 1 or 2 and holding it and hoping for it to hit 100k or close to it. I've done dumber things with that amount of money and if this even has a slight chance of happening, im in.
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I follow lot of Twitter guys for crypto. One of them reshared a chart he had from few months back lol it was pretty spot on. Correcting to 30k may be wick in to 20s, can’t be exact and then sideways for months retesting bottom again and then mooooon to 300k lol. He hit the first part on the money now see if the next one comes true he did have 24-25k as bottom but he did say can’t be 100% so we might be the lowest we gonna see for now.
 
NKD said:
I follow lot of Twitter guys for crypto. One of them reshared a chart he had from few months back lol it was pretty spot on. Correcting to 30k may be wick in to 20s, can’t be exact and then sideways for months retesting bottom again and then mooooon to 300k lol. He hit the first part on the money now see if the next one comes true he did have 24-25k as bottom but he did say can’t be 100% so we might be the lowest we gonna see for now.
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Man, i just hope hes wrong about the 25k and it dips a bit harder but who knows. All speculation, we'll see.
 
obs said:
So what changed so much to make it worth $10k 8 months ago and 30-60k now? Yes, I think the 10-20k range is pretty likely for it to fall to for a while
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A lot, if you are invested in BTC you should be following the news of the entire crypto market. Also, each cycle BTC has 40% on avg dips 7 or 8 times, this would only be I think number 4 of this cycle. 80% corrections have happened every cycle also.
 
Randall Stephens said:
Anybody have any pricing data for eBay trends? Things level off yet or still going up?
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I think Tomshardware had charts like that. I watched the GTX 1650 on eBay for a while now. They're usually selling for $400 Canadian and it's still pretty much the case. If the latest crypto prices changes anything, it may take more time.
 
NKD said:
some rumors out of china that they wanna ban bitcoin mining. So people are welcoming it so china doesn't have shit to do with bitcoin rofl.
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This isn't what I was getting at. I was curious what action has been taken, because there's never been any. The reality is China has "announced they're banning crypto/bitcoin/whatever" like twelve different times on the crypto timeline, and never once followed it with any actual enforcement action. It costs nothing to press release a "ban", and the big BTC holders in the PRC - as well as any insiders with prior knowledge of the announcement - make massive profit and increase their stack in both directions each time: short positions in place ahead of the announcement, and loading up more on the dip they caused. China has actually gone to great lengths to ensure the bulk of the global BTC hashrate is within their borders - that isn't an accident, and also doesn't jibe with the PR speak about "environmental concerns".

Elon's "announcements" about environmental BTC concerns are also calculated. He's not actually as bipolar as his tweets. High profile individuals, and most countries of consequence have simply recognized and are taking advantage of the relative wild-west-ness of the crypto market, and using PR announcements that cost them nothing and make massive profit by being able to not only predict but cause the exchange rate to go in a direction they'll benefit from. India got in on the fun not long ago. Expect everyone to take a stab at it sooner or later. With the regular stock market this kind of bullshit is illegal.

The idea of truly and literally "banning crypto" would be like trying to ban air due to the nature of it, and China actually knows that.
 
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DPI said:
This isn't what I asked though. Specifically I wanted to know what action has been taken. Because people just casually observing headlines about 'China banning crypto' is meaningless without considering the many layers to it.

China has "announced they're banning crypto/bitcoin/whatever" at least a dozen times on the crypto timeline, and never once followed it with any actual enforcement action. It costs a country nothing to "announce" a "ban", and the big BTC holders in the PRC - as well as any insiders with prior knowledge of the announcement - get even richer and increase their stacks further with short positions already in place, and then buying even more on the dip. A guaranteed profit in both directions. China has gone to great lengths to ensure the bulk of the global BTC hashrate is also within their borders - that kind of thing isn't an accident, and doesn't jibe with bullshit PRspeak about 'environmental concerns' headlines.
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Yea. Misunderstood your question. But I agree with everything you said. Its all smoke I think. They want control over it and I doubt they will just let it go like that. Because if China exits mining lot of players around the world will be ready to go in an instant.
 
Bitcoin will go back up. A lot of panic selling coming from China as miners want to liquidate before it becomes much more difficult for them to do so.
 
Jinto said:
Bitcoin will go back up. A lot of panic selling coming from China as miners want to liquidate before it becomes much more difficult for them to do so.
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Thats just another rumor. I am sure some panic sell but no one really knows. It all seems too coordinated every bull run. I heard even the frickin pope was talking shit on Bitcoin. I mean bro do what you are selected to do lol.
 
Prediction (not financial advice): Expect Elon to pump BTC back up directly or indirectly before June 30th. That's when TSLA's balance sheet has the impairment test. He's not going to let TSLA miss Q2 earnings on a dip he helped cause.
 
If China wanted to break bitcoin they could just send the boys round to their local deep pools and sieze the whole blockchain. Maybe even on the d/l and redistribute the 'lost coins' to themselves, and sell em, wild profit before anyone knows they stole the blockchain.

They haven't done that and they haven't locked off crypto exchange because its currently useful to the Party in their view.
 
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