Infrastructure Bill ~ Crypto Bull Market Stumbles
The crypto bull market seems to have stumbled this week? Why?
Earlier this week, the CEO of AMC Theatres, the largest movie theatre chain on the planet, said his company would begin accepting shiba inu coins as payment through Bitpay wallets. This could happen in 60 days.
While a positive news story, it did nothing to prevent the crypto bull market from cratering out over the past 24 hours after a seemingly parabolic rise.
Bitcoin Value Falls
Bitcoin’s value fell below $58,000 on Thursday - a sharp contrast to the digital asset’s achievement the week prior when the price shot up to over $68,000 for the first time.
Some are quick to associate the recent decline in cryptocurrencies with President Biden’s signature on a new $1.2 trillion infrastructure bill, which includes specific language on the tax reporting requirements for cryptocurrency exchanges.
The news that some of the proposed legislation may treat stablecoin issuers like banks didn’t sit well with investors. Still, there are investors that have developed a bit of an appreciation for these ‘corrections’ considering how it aligns with their investment strategy of ‘buying the dip’.
But not all of us are willing to adopt this strategy, and a harsh dip can chase off new investors. Sometimes, permanently.
Is the Crypto Market Immature?
Consider for a moment that market volatility like we’ve seen in the last day or two can be directly linked to the crypto market’s immaturity. Cryptocurrencies, by and large, have yet to achieve a state of ‘mainstream adoption’, meaning many, many traditional investors are still watching from the sidelines.
Volatility, from a crypto bull market to a bear market, has come to be expected. When a celebrity tweet can send a particular coin upwards of 10% or more, it’s a sign of a market still evolving.
Another bit of news that may have triggered the flight mechanism among some investors had to do with Chinese regulators intensifying their efforts to ferret out those in the country still involved in Bitcoin mining activities, something the Chinese government outlawed earlier this year.
America’s infrastructure bill and China’s clamp down on mining activities both had an obvious impact on Bitcoin. As the key digital asset used in assessing the health of the entire cryptocurrency sector, both announcements had a negative impact that rippled across the entire market.
Mainstream Adoption of Crypto
Still, there were signs this week that cryptocurrencies will continue making their push towards mainstream adoption.
The Los Angeles sports arena, home of the NBA’s Lakers and Clippers, will be renamed from the “Staples Center,” the formal name of the 20,000- seat arena since 1999, and become the “Crypto.com Arena” in a $700 million deal for the naming rights.
As a result, Crypto.com’s digital coin, CRO, was buoyed to an all-time high of $0.593 on Thursday after the company won the naming rights.
Lastly, the crypto ‘brain trust’ anticipates that more digital coins will become an accepted form of payment for many more vendors in 2022. AMC has jumped on the bandwagon, McDonald’s and Burger King are in the conversation, even charities are embracing cryptocurrencies as more and more investors take their positions in the market.
As this trend evolves, the value of cryptos will likely increase and the market will continue to evolve, not retract.
Author: Greyson Kelly
Greyson Kelly is a business writer living in Milwaukee, Wisconsin. He writes extensively on technological trends, cryptocurrency, and ‘cutting edge’ industry topics. He has an MBA in Business and has over a decade of experience in communications and public relations.