A popular crypto trader expects the government to clamp down on the industry, but not as quickly as some pessimists believe.
The pseudonymous crypto-strategist Credible recount his 337,700 Twitter followers that he is concerned by news that part of the Democrats’ new spending bill in Congress includes a provision allowing the IRS to receive $80 billion in funding plus the ability to to hire 87,000 new employees.
The analyst believes regulatory crackdowns and tax scrutiny of crypto investors are likely to cripple the industry, but there is still a very bright spot on the horizon before markets are torpedoed as a final mega- rally exceeds the slow march of the government.
“Probably leads to the next multi-year bear [market]. A dot-com era bust fueled by new regulations in the crypto space that is wiping out 90% of what currently exists.
We haven’t seen a major cleanup yet, but it will happen in my opinion.
Another new all-time high – regulators are moving slowly.
Regarding Bitcoin (BTC), Credible follows up on a tweet from August 8 where he said he doubted the strength of last week’s rally and was watching for further price declines after the initial correction.
The graphics guru is now convinced that BTC’s surge was actually a bluff and he anticipates choppy bearish action that will eventually take Bitcoin below $22,000.
“I was right to be skeptical about this gathering, it appears to have been a fakeout.
I’ve just tapped into that local demand region I was looking at earlier and think we might see some short term relief, but we’re looking for rejection at RED and a chase through to our original targets.
At the time of writing, Bitcoin is trading for $23,962, an increase of 6% in the last 24 hours.
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