Oh boy, what a fun 12 hours its been.
Let's start with the first one. Yesterday at midnight at 12:03am (I guess its really today morning) Elon Musk tweeted that Tesla will be suspending all vehicle purchases made by Bitcoin. Meaning they will no longer allow the sales of Tesla cars for BTC like they initially announced about three months ago. They are expressing concerns about the use of Fossil fuels for Bitcoin mining. This however does NOT mean Tesla will be selling it's BTC holdings.
Following the tweet BTC fell all the way down to $46k mark before finding support and slowly bouncing upwards.
In other news, Bloomberg announced that DOJ and the IRS will be investigating the world's leading Crypto exchange Binance in efforts to root out money laundering and other illegal activities.
This has caused an even bigger drop in BNB. The official twitter account of Binance had this to say about the ongoing investigation:
To read the full Bloomberg article click here:
https://www.bloomberg.com/news/articles/2021-05-13/binance-probed-by-u-s-as-money-laundering-tax-sleuths-bore-in?utmsource=twitter&utmmedium=social&utmcontent=crypto&utmcampaign=socialflow-organic
Where do we go from here?
Like I previously stated in Red days like these, I believe now is a good time to re-evaluate your trading style. Ask yourself "Why did I put money in this coin?" Did you believe in the project? Did you buy it based off community hype?
Its always a great idea to use these days as a teachable moment. A lot of beginners in the Crypto world throw their money left and right because they're trying to find hidden gems. They also throw their money at all these shitcoins based on hype but they don't know when to exit because they've never set a target for themselves.
Closing words:
Always do your own research. If you're planning to hold an investment for long then you better believe in the project or else walk away from it. 6-8 months is not long term. Couple of years is long term so if you can't ride out corrections and accept that red days, bear markets and pullbacks are all part of the market cycle then long term investments is not for you.
If you buy a shitcoin like Doge or Shiba or Cumrockets etc.. You better know what you're doing. These coins are not meant to be held forever. These are shitcoins and usually have absolutely no backing or real value. They ride solely on hype. But hype doesn't last forever. So if you're going to start risking your money by investing in these coins then make sure to DYOR and investigate why is a certain coin receiving a lot of hype and most importantly, set a target for yourself. Don't try to chase the absolute top.
Re-evaluate your choices. If you invested in BTC for the first time and planning to hold it for years then congratulations first of all. And second, welcome to the crypto market. Volatility like this is common. If you can't handle it then Crypto is definitely not for you. Ask why you bought a certain coin, why you closed a position and your overall strategy. Like I already said, days like these are good days to learn. Everyone is happy and shitting rainbows when everything is green is going up. But you learn from mistakes.