Is the next bear market closer than we think? Are the fluctuation of the last week just the beginning? Or is everybody just panicking over nothing? In this articles I will try to put out some indicating events that might push us into the next bear market. Before we jump into it, bear (pun intended) in my mind that this article is just for entertainment purposes!

Future Risk Events

Like mentioned in my previous article (Link) exchanges like Coinbase are at risk for getting sued by the SEC. Furthermore, stable coins that are a big part of these exchanges also are viewed as securities. Because these stablecoins are mainly backed by bonds this does not provide a very secure base for economy. Since the crypto market is slowly making its way to the main stream such exchanges and mainly the stable coins are attracting attention from the government and central banks. By this move the government wants to gain control over the stable coins and if successful practiced it might push all of the crypto prizes back by a lot. But a stablecoin crack down is not the only thing that is puts the crypto market at risk.

Another risk factor is the long predicted stock market crash that is around the corner. This getting more and more predictable since even fed officials are selling their stocks to “avoid conflict of interest”. Is this not convenient as the stock market is at his all time highs?! Furthermore, many people believe that fed officials always have some background information and with the rising inflation around the corner this just another sign of the upcoming crash.

Last but not least there is the infrastructure bill that is about to get passed. Here, not only the crypto gains are at risk but also all of the capital and dividends gains combined. The fed wants to increase these gain taxes for high net individuals. But because most of the holders are high net individuals that could lead to a big sale by investors who want to secure their gains without the big tax deficit.

Conclusion

I have to admit that all of these events and the results of these sound very terrifying. On the other side, true investors are holding on to the investments because they believe in the future purpose of them. You can look at it this way: Crypto will get on sale for a period of time until some more good news will come around and push the crypto space into the bull market territory once again!

Published by ga38jem on Publish0x on the 15th of September 2021