BREAKING CRYPTO NEWS! THE UNITED STATES JUST SAID WHAT ABOUT CRYPTO? BE PREPARED, NOT SURPRISED!
What were going to talk about is what the us treasury secretary just said regarding stable coin regulation, as always id like to preface by saying, like it says at the bottom, that im not a financial advisor, but rather i always try to put you guys on the Place that im in the bloodbath was horrid yesterday ill be the first to admit that i definitely had some fear, but at times of fear, what do i do? Is i take a step back and pull away from the market instead of selling for a loss? I just kind of take a step back and realize: hey things might get better eth hit 2200, followed by somewhat of a rally back to 2400, but now again things arent, looking so good and when it rains, of course, it tends to always storm, especially in crypto And when we rally when things are green, then theres always all this positive news that goes around well. The big piece of news that has been around right now is the depending of tara, usd or ust as a stable coin. As you guys saw yesterday, it fell down to 69 cents when, apparently, if you look at the all time chart for tarot ust, its always supposed to be pegged to the dollar, meaning that they have a burn mechanism that is always in place to ensure that it Stays at one dollar well yesterday, as the market started to bleed, and there was significant volume in the downside, lots of selling pressure people even pulling out of the stable coins.
We saw a huge dip, a significant dip, and this wasnt resolved for not just a minute or two. This was hours and hours and hours of this until this time, right now, its still at 91 cents. So i know some people have been taking advantage of the arbitrage effect by buying the dip on terra as a as a stable coin, because, again at some point it needs to come back to a full dollar or so that is what we think now whats going On in terms of this whole treasury secretary, janet yellen, well, ust rose the woes that happened yesterday, draw spotlight in janet yellens, uh senate hearing on the financial crisis that we are currently seeing. She stated and ill play the video in a moment that the us treasury secretary, janet ellen, focused on ongoing distress of stablecoin ust during testimony before a u.s senate panel on tuesday just hours after the actual dollar pegged token plummeted to a low of 65 cents at At least one platform, and that also halted trading, because again people were taking advantage of this. Because imagine if you put lets say you had a hundred million dollars at 69 cents you bought in, and you knew its gon na go back to a dollar. You just made a 40 roi so again, potentially, if you put in 10 million dollars, you have a 4 million dollar roi if youre making 40 back. If it just goes back to that one dollar.
So, as a senate senate banking committee hosted a hearing on risks to the stability of the u.s financial system, yellen told senators that ust experienced a run and had declined in value and heres the video. So you can hear her words. I would note that there was a report just this morning in the wall street journal that a stable coin, known as terra usd experienced a run and had declined in value and um. Well, so i i think that simply illustrates that this is a rapidly growing uh product and um that there there are risks to financial stability and we need a framework, thats thats appropriate. So again, a lot of stuff again. I dont believe that a lot of these politicians know what theyre talking about, but one of the things that she did mention at the end there is, we need a framework and thats something that im in agreement with, especially when it comes to these stable coins. Things like this should never ever ever ever happen. Things like this, where we see this random dip of someone, maybe cashing out of the position, not enough burn happening fast enough for it to not be reflected on the price action. We shouldnt see that and what happened yesterday plugged the market in fear, mind you, the bitcoin, fear and greed index. Right now is indicating an 11 fear score, meaning we are an exuberant or extreme fear in the market so again when it rains it pours, but oftentimes the biggest transfer of wealth occurs during these times.
So again, i think the bloodbath is not yet were not at the green yet and i dont think were going to reverse quite yet, especially with some of the uncertainty were seeing now tomorrow, wednesday may 11th. I think that is the first day that we might have information regarding the short term outcome of the crypto and stock market. Why? Because inflation reports are coming out were gon na see the number on inflation last that we saw last month or actually back in march end of march and beginning of april 8.5 was reported so tomorrow. Well also get the new report on what is our current inflation rate if its higher than anticipated or expected, this could get a little bit worse, so be prepared, not surprised for what is to come, but this again could be an opportunity to generate some wealth by Buying the dip on your favorite assets in the market, look at the top ten and after the uh, the terra ust thing thats been going on. Terra luna is down 45. This also because terra is a pretty substantial token. They have a strong backing strong community. So again, the dip that we saw could be short term if they correct whats happening with ust or it could be the end of ust and then potentially create some flood around luna.