Crypto Market crashing today, today's word!!! "Irrational Exuberance" Are you feeling it now?
How far down will we go? Have you sold some at the top to offset your tax implications? For those of you who made a few hundred k for example, if you were trading on the way up you have some significant tax implications that could cost you 30k to 50k USD.
How is your sentiment on hitting 100k in a few months now you have seen a huge dip today?
The new word of the day is Irrational Exuberance. This is the best way I can describe the crypto pump and dump that inevitably always happens. I wrote a post about how it happened with MTGOX driving prices up to 1.2k BTC then BTC fell down to less than 200 ish, how in 2018 we saw 20k and then down to sub 2.5k. What will we see here?
In order for prices to continue to increase you need demand. There is never continuous demand for irrationality, eventually the truth comes to light. It is extremely irrational to think for example, that bitcoin had some huge break through in fundamentals of the technology that will make it more mass adopted/used/software upgrade/etc. Because that didn't happen. What did happen is people continuously were buying it because they wanted to sell at a higher price than they bought it, not because they believe or like the fundamentals of the tech.
The fundamentals of BTC are, practically speaking for decentralization, 0. Their developer team is owned by big banks and a majority of the mining is done in China(a place where the dictatorship govt doesn't allow you to do anything unless the Communist Chinese Party controls it). See here for more details