I have been feeling uneasy for the past few days looking at the crypto-market. I rarely like to sell when markets are going red, in fact it is a great time to buy. Why wouldn’t you want to buy something at a discount price right? However, I believe the discount will get much much better in the next coming week or so. This is not an attempt to spread fear, as I am going to explain why it is smart to wait on the sidelines for a few weeks or so before jumping back in. If you are like me, you do not have any disposable income and cannot average down. I am no expert, however, I will layout my reasoning as to why I think you should sell and jump back in later in the month.
Countries around the world are attempting to figure out what to make of crypto market. The issue is the lack of understanding of what cryptocurrency is, therefore, is leading to governing bodies inability to be describe it, thus their inability to appropriately regulate it.
The US Securities and Exchange Commission (SEC) chairman Jay Clayton and J. Christopher Giancarlo, chairman Commodity Futures Trading Commission (CFTC) will meet on Feburary 6, 2018 to discuss regulation surrounding the cryptocurrency marketplace. It is an attempt to get an understanding of what cryptocurrencies are and how they can be regulated. This is a good thing. Both Clayton and Giancarlo have discussed at length their positons and goals of this meeting in this article posted in the Wall Street Journal. So at this time, it would be best to just hold off and see what the outcome of this meeting is.
Furthermore, banks such as J.P. Morgan and Citigroup will no longer permit credit card purchase of cryptocurrency. This is due to the high volatility of the markets.
This morning, South China’s Morning Post reported that China is to block all websites related to cryptocurrency trading and initial coin offerings (ICOs) – includng foreign platforms in an attempt to completely eliminate the market. I would take some time to read the article in the link above. They have also removed crypto-related ads from local websites.
There was some misrepresentation of what India’s finance minister Arun Jaitley said during his budget speech in Parliament on Feburary 1st. People assumed that cryptocurrencies were banned. However, that was not the case. All things are ok in India as of now.
Canada seems to be more open to cryptocurrency as the government has began to look at using blockchain for their day-to-day transactions. Additionally they seem to have approved the first blockchain ETF. Canada is by no means a major player in the market, however, due to its relaxed view of the technology it could eventually become one.
I left Korea for last of all these countries because no one really understands what is going on in Korea. The country is fully invested in cryptocurrency and blockchain. However, they may ban some exchanges or they may not. I won’t post any links to that because it is not from a legit source. There is too much uncertainty going on at this time for any level of comfort. So I would wait until the dust settled there as well.
For the reasons stated above it is time to sit out and wait for the bounce.