Jan 27, 2023
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Crypto regulation is going to spark the bullrun of all bullruns

Written by pinmin


Looking at historic Bitcoin (and crypto) crashes and bear markets, they’ve often been triggered and worsened by cryptocurrency exchange hacks/crashes, issues with stablecoins, and fears of lack of regulation:

  • 2011: after Mt. Gox hack (Japanese crypto exchange), BTC crashes from $32 to 0.01 USD.
  • 2015: BTC crashes from $1000 to <$200 USD. This was associated with China crypto crackdowns, but also with major financial US institutions expressing concern over Bitcoin’s security and price manipulation.
  • 2017: a Japanese exchange, Coincheck, suffered a $530M hack (I know, small change by today’s standards) that started a BTC fall from $20k to <$3200 USD. SEC FUD including rejection of BTC-exchange traded funds applications added to the bear market following the crash.
  • 2022: well, there’s the global political crises. But there’s also the collapse of Terra, Celcius, and FTX that all happened and contributed to the crash of BTC from $68k to <$16k. source

Institutions and individuals have been right to avoid or be cautious in crypto given these crashes, hacks, and frauds that tanked BTC and crypto markets time and again. But as markets improved, cash flowed back in from both groups and pumped towards BTC ATHs.

Regulation will come to crypto, and it’ll take adjustment. If it’s too strict we’re gonna have to fight it. But it won’t destroy crypto. It’ll increase institutional trust in the system like never before and facilitate mass influx of cash from businesses, banks, governments, and investors trying to take advantage of the safer but still lucrative crypto markets. The massive inflow of money will bring ATHs, FOMO, and lots of mooning. Hold onto your butts. Some of the lucky few will be driving lambos, hopefully the rest of us at least a new Kia. And if regulation helps reduce hacks and fraud, then Bitcoin crypto crashes and bear markets may be fewer and less painful. Remember Japan and it’s multiple exchange hacks? Their crypto regulation is now pretty stringent as a result – and their FTX Japan customers will be getting their funds back, starting in February.

submitted by /u/bingorunner
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