A popular crypto trader expects the government to crack down on the industry but not as quickly as some doomsayers believe.
The pseudonymous crypto strategist Credible tells his 337,700 Twitter followers that he’s concerned by news that part of the Congressional Democrats’ new spending bill includes a provision for the IRS to receive $80 billion in funding plus the potential to hire 87,000 new employees.
The analyst believes regulatory crackdown and tax scrutiny on crypto investors are likely to cripple the industry, but there is still one very bright spot on the horizon before the markets get torpedoed as one last mega-rally outpaces the slow march of government.
“Probably leads to the next multi-year bear [market]. A dot-com-era bust fueled by new regulations across the crypto space that wipes out 90% of what’s out there right now.
We still haven’t seen a major cleansing yet but it’s bound to come in my opinion.
One more new all-time high first though – regulators move slowly.”
When it comes to Bitcoin (BTC), Credible follows up on an August 8th tweet where he said he doubted the strength behind last week’s rally and was watching for more price dips after the initial correction.
The chart guru is now convinced that the BTC run-up was in fact a bluff and he anticipates some choppy downward action which ultimately takes Bitcoin below $22,000.
“Was right to be skeptical of that rally, looks to have been a fakeout.
Just tapped that local demand region I was eyeing earlier and I think we may see some short-term relief off of it, but looking for a rejection at RED and continuation down to our original targets.”
At time of writing, Bitcoin is trading for $23,962, a 6% increase in the past 24 hours.
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