After the Libra hearing, the BTC fell sharply. Is this bull market ending?


After the hearing, the BTC reproduces the continuous waterfall, and the circle of friends is exclaiming: Is this wave of the market over?

And look at Hong Qigong for a simple analysis of the fundamentals for you.

First of all, the big probability is the hearing market. Because Facebook clearly stated that “regulators do not agree to launch Libra”. If you only understand it literally, you will feel that Libra is almost aborted. The expectations of billions of ordinary users brought by Libra are greatly reduced. So some small people who don’t understand it will start selling, plus big institutions The low price of food and the plate, there is this wave of waterfalls.


Second, what is the result of this hearing? I think Libra's founder, Marcus, is smart and even awkward. All the questions asked by the Congress, all of them have careful preparations, not only answering the questions, but also digging all kinds of pits for the inquiries. Look at the four most critical issues:

1. Who is the regulator? Which country's regulatory agency? The regulator clearly does not include the US Congress because Congress is a legislative body, not a law enforcement agency. The consent of the regulator is obviously not the same as the congressional agreement.

2. Not subject to the US Bank Secrecy Act. This has already answered the first question: Who is the regulator? Obviously your Congress is not a regulator. What I mean here is that I can't bird you, but I still choose to communicate and cooperate with you. You can do it.


3. Registration in Switzerland, but subject to FinCEN supervision, most of the words are ignored. This FinCEN is the “Financial Crime Enforcement Network Bureau” of the US Treasury. Libra has been communicating with relevant US regulatory agencies and is registered under the regulatory framework. This information is very important: Libra has a variety of surface review In fact, they are all playing in the senators who are sensational to the public; he secretly bites in the end: it is good to help you in money laundering, and you can't control me with other things.

4. Facebook is only a member of the Libra Association and cannot decide on Libra's future trend. At the moment the white paper was released, Libra was born. The operation of the association can't stop. Marcus knows this very well, so he is actually playing Tai Chi with this group of parliamentarians.

I think that by the time Libra was introduced, an announcement would solve all the problems:

"Regulators have agreed, we have passed the anti-terrorism anti-money laundering regulation, so what you said in Congress is useless! Libra wants to launch this is the association's decision, we have only a small amount of voting rights on Facebook, I called stop No use, it’s useless to stop."


As for the BTC plunging all the way, on the one hand, it proves that this bull market is the massive user expectation brought by Libra. On the other hand, it shows that the dealers can use the news to play the game, and I don’t know how to clean up the truth. Less chips.


Individual judgment on the follow-up:

First, review the most stringent regulatory events in history 94 and subsequent market conditions. In a word: regulation is actually useless for the market.

Second, the big institutions are not as stupid as retail investors, and then they can see that the big institutions are greedy and eaten, and the next wave of gains is rising.

In summary, I think that the real take-off of this round of bull market will be caused by most people to doubt life after this wave of washing.