E Is Now The Time To Buy Crypto & Penny Stocks?

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

This week, the crypto crush continued. What began as a small crack in crypto has opened up into a full-blown wound. Now traders are looking at when the healing can begin. Comments from Tesla (TSLA) CEO Elon Musk sparked the shakiness in Bitcoin prices and related cryptocurrency stocks. Earlier this quarter, Musk explained that Tesla would stop taking Bitcoin as payment due to the environmental impact the mining of Bitcoin presents. Then over the weekend, Musk continued adding fuel to this dumpster fire suggesting that Tesla had sold out of its bitcoin holdings. While Musk ultimately refuted this, the damage had already been done. This week China took the baton pushing the crypto market lower thanks to comments from the government saying that financial institutions won't be allowed to deal directly or indirectly in cryptocurrencies. 

Why Is Crypto Crashing? 

The People's Bank of China said that virtual currency “is not a real currency” and “should not and cannot be used as currency in the market.” This, in itself, suggested that China was aiming to limit institutional activity in cryptocurrencies. The Bank also referenced the latest jump in crypto prices was due to "speculation," which is all too reminiscent of the 2018 crackdown on ICOs. While that ultimately lead to a complete breakdown of cryptocurrencies a few years ago, will this latest move by the PBoC result in the same?

While that works itself out, the price of Bitcoin, Ethereum, and other major cryptos has dramatically recovered throughout the day on Wednesday. Bitcoin tested lows around $30,000. This is a level that hadn't been seen since February. Meanwhile, ETH price broke below $1,800 at one point. Heading into the afternoon session, most crypto in the news has bounced significantly.

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William K. 3 weeks ago Member's comment

interesting, although what it means to me is not obvious.