Did The “Bubble” Just Pop?

All across the crypto landscape, there has been red. Massive sell offs amid rumor that the U.S. Treasury will be accusing several financial institutions of money laundering using cryptocurrencies.

This comes a couple of months after Treasury Secretary Janet Yellen says “I don’t think that Bitcoin . . . is widely used as a transaction mechanism.” She continued, “To the extent it is used I fear it’s often for illicit finance…”

It has been a main concern around bitcoin for a while that it could be used for nefarious reasons. Like the recent Russian Election Fraud Scheme

Now the sights have turned from the criminal underworld to the big bad banking cartels. One place that should have been monitored from the start.

Since the rumor spread, Bitcoin dropped from above 60k to the low 50k’s. Other alt-coins have followed a similar route.

A pullback was expected in my opinion and those who have diamond hands probably have this saying in mind, "Buy when there's blood in the streets, even if the blood is your own."

Yes, now is the time to "Buy the rumor, sell the news". As those who may be caught in the crosshairs or those with “paper hands” sell off their positions.

It is likely only a rumor, expertly spread, to drive prices down, to be bought back at a “discount” by those with deep pockets. We shall see when the dust settles and official news hits. Expect new all time highs then.

Key points

• U.S. treasury rumor causes mass selloff of crypto

• Banking institutions probably tied to money laundering

• popular crypto at a discount

Looking forward to what happens next.

Stay bullish Friends

~KP