CRYPTO MARKET AND VOLATILITY

It is not technically a crash because if you look at what is going on, XRP, Binance BNB were up a lot this week, so they correct more than others. Dogecoin pumped by over 500%, and it is expected for people to take profits from that pump. Dogecoin will most definitely find a new support level and go sideways for some time and eventually have another pump cycle. Dogecoin will hit a dollar by the end of this bull market, but it will take one or two more pump cycles.

When Elon Musk started talking about Dogecoin, the last pump cycle we had now looks like a small bump compared to the current parabolic spike. Although it may level out higher at some point, go sideways for a while just like it did the last time when it peaked out around eight to nine cents and leveled out around five cents before going sideways for a while and went parabolic again.

The crypto market moves like waves; the higher the wave, the bigger the crash. Dogecoin is a very good example of this, especially after going up by over 500% within a week.

On the other hand, Weeble currently plans on adding more cryptocurrencies, and Weeble is a massive stock platform. Weeble sees the demand in cryptocurrencies and is taking advantage of it; the same thing with Robinhood, they are currently working on going all-in on cryptocurrency. Visa, Mastercard, and Paypal are also working on making cryptocurrency more accessible by offering more services. JP Morgan and Morgan Stanley will also be doing more crypto services by the end of 2021 as soon as the demand increases.

There is some fear in the markets currently with the Biden administration discussing new tax laws and several regulations. Regulations will cause short-term volatility, but this is normal and expected, and regulations are good for the long term.

Bitcoin has fallen below fifty thousand dollars due to Joe Biden’s announcement concerning doubling capital gains tax. Americans are getting doubled to 40% from the current 20% on capital gains tax.

We still have several speculations of certain regulations coming into play in the short term adding to Bidens’s tax doubling. Regardless, this only has a short-term effect on the crypto market because more demand will be coming into the crypto space. We are not entering a bear market yet.

The volatility in the market could continue, especially if there is more bad news and fud involving regulations and tax laws. That is the only thing that can cause more panic and cause a further dip in the market.

This market dip is the best time and perfect opportunity to get a position on smaller capital cryptocurrencies and buy more coins at discounted rates. These types of dips are great opportunities, especially for new crypto investors.