Bitcoin is getting crushed.
Just weeks after testing an all-time high of $63,682, Bitcoin is in free-fall.
Last checked, it’s down another 11% to $29,365, and could test $22,015, worst case scenario. Some technical analysts say Bitcoin could fall to as low as $20,000, says CNBC.
All thanks to China.
According to CNN, “State media reported that the southwestern Chinese province of Sichuan ordered a halt to all crypto mining operations and cut off the power supply to many mining facilities. The province is a major hub for mining, the process of using powerful computers to run and solve algorithms that generate new cryptocurrency coins and verify transactions.”
There are also concerns the crypto market could see strict regulatory policies.
However, while the U.S. may favor strict policies with cryptocurrencies, Hester Peirce, Commission of the U.S. SEC is concerned. In fact, according to her interview with the Financial Times, “I am concerned that the initial reaction of a regulator is always to say ‘I want to grab hold of this and make it like the markets I already regulate.’ I am not sure that’s going to be great for innovation.”
Until this new round of fear in the crypto market passes, some of the top crypto miners, and investors could plunge even more. That includes MicroStrategy (MSTR) for example, which now holds 105,000 tokens. Other top stocks plunging on the news include Marathon Digital (MARA), Riot Blockchain (RIOT), Bit Digital (BTBT), and HIVE Blockchain (HVBTF).
All could be solid short opportunities at current prices.
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