Yet another day in this crypto crash. Can you believe BTC actually hit $7,700? That’s insane. I’m honestly starting to believe the manipulation rumors. Some of my friends tell me that everything should recover during Chinese New Year, so just gotta hodl out a week or two longer I guess =).
I’m still looking through the news trying to find some silver lining. And it looks like I found something important that’s happening tomorrow. The SEC and the CFTC (a governmental body that has a huge say in futures trading) are going to testify about crypto (mostly bitcoin futures) regulations in response to concerns about the mainstream stock market not being prepared enough for crypto trading.
They fear that the FOMO created by the general public (because everyone can see and hear crypto values soaring high and fast) plus the volatility of crypto would disrupt trading safety systems in place. It’s a legitimate concern because I’m sure you’ve seen mainstream people getting hyped about wanting to buy into crypto. That really could impact the stock market once more crypto futures contracts become available.
If the hearing doesn’t go well, they could revoke the self-certification process, which is a major reason why CME and CBOE futures became available for trading so quickly without too much public input and scrutiny. If crypto futures contracts have to be more rigorously reviewed, it would slow down crypto’s entrance into the stock market. But that really shouldn’t affect the price too much (unless the manipulators change their behavior).
The real price danger is how the cryptotraders will react to the outcome of this hearing. They’ll see the headlines of the outcome, and this could cause a significant market buy or sell.
Either way, it would be a good idea to watch the hearing live and adjust your trading accordingly.