The cryptocurrency market has been growing exponentially over the past few years. And if you have reservations about its success, the entire crypto sector is closing in on $2 trillion. While this is certainly not the first time this has happened, the first time ended in the market tanking. And even though the market looks like it is still growing, could this time be a rerun of last time as well?
For those of you still unaware, the US has recently introduced a bill that would charge taxes on crypto transactions. Despite this being something that no one in the community was looking forward to, the bill passed anyway. So with this bill soon coming into effect, experts are wondering if it can truly impact the market and stop it from reaching the $2 trillion goals. Even if it does not stop it, could it slow it down?
Unfortunately, this bill has managed to slow down the initial climb of cryptocurrencies towards $2 trillion. As soon as the bill passed, the market price for all cryptocurrencies dropped significantly. Just Bitcoin alone, which was soaring over $50,000 before the bill passed, dropped down to$45,000. Now, this is obviously quite bad, and the entire market has taken quite a hit because of these new regulations. However, different users are having different reactions to the entire situation.
Almost the entire community is quite displeased about the bill and wants the crypto market to remain this sort of Wild West of finance. On the other hand, veterans of the community and experts have differing opinions. They think that despite the market taking a very serious hit recently; it is only in the short run. An analyst working with China Tonghai Securities gave his thoughts about the state of the current market. Esme Pau said that it is long-term gain but with short-term pain. He believes that regulation of the industry is just what it needs to appeal to a more mainstream audience. Pau thinks that regulation can also enforce the market against breaches and increase clarity.
During the previous rebound, a crackdown in China over crypto was weighing the market down. But despite making it past that, there are still plenty of security risks that are keeping most mainstream investors at arm’s length from the market. The most recent $610 million crypto heist is just another example of the many security issues in the market.
Overall, things still don’t look too dire for the crypto sector. Investors are still doing their job and the price index will bounce back in no time.