No immediate catalyst over and above the recent list of potential narratives (from the infrastrucuture bill's crypto clause to 'sell the news' on Taproot and Twitter CFO's comments), but cryptos are getting monkey hammered this morning.
Some traders have pointed to comments from The IRS's head of criminal investigations this morning, who noted that the new infrastructure bill gives IRS more sight into crypto trading.
The IRS seized $3.5 billion worth of cryptocurrencies during fiscal year 2021, a figure that accounted for 93% of all the assets seized by tax enforcement that year, and the agency's head say they could seize cryptocurrency valued at billions of dollars that’s linked to tax fraud and other crimes in the coming year.
Bitcoin is back below $60,000, trading at its lowest in two months...
(Click on image to enlarge)
Broken below its 50DMA...
(Click on image to enlarge)
While Ethereum is trading down testing the key $4000 level...
(Click on image to enlarge)
What happens next?
(Click on image to enlarge)
h/t Raoul Pal
And forward inflation swaps are leaking lower, but still indicate upside pressure on ETH...
(Click on image to enlarge)
Highlighting a lack of “fear” in sentiment, trader and analyst Rekt Capital was sober on the likelihood of a full-on trend reversal.
“Doesn’t seem that BTC investors are fearful enough towards price for this retrace to be over just yet,” he warned.
“It is Extreme Fear that precedes maximum financial opportunity, not neutrality.”
(Click on image to enlarge)
The Crypto Fear & Greed Index stood at 54/100 Thursday — “neutral” territory — having reached local highs of 84/100 on Nov. 9.
Comments
Log in or sign up to join the conversation.