You Might Want To Check On Your “Investments”, Because The Financial Markets Are Starting To Go Haywire

Is the party almost over?  Volatility has returned to Wall Street in a major way, and certain investors are getting absolutely crushed.  On Wednesday, a trillion dollars in paper wealth had been wiped out during the trading session at one point, but those losses were later pared back as cryptocurrencies rallied.  On social media, there has been a lot of weeping and wailing due to the huge financial losses that some people have experienced this week.  But if you think that these losses are bad, just wait until you see what is coming later.

In the old days, investors would carefully select the companies that they were going to invest in.  The key was to identify companies that had something of great value to add to society and that were being run very well.  In those days, strict adherence to the fundamentals would often bring great rewards.  Just ask Warren Buffett.

But these days our financial markets are little more than giant casinos.  Companies that lose giant mountains of money year after year are supposedly worth billions of dollars, and “assets” that have no inherent value whatsoever are endlessly gobbled up by drug-fueled “investors” that are looking for a way to get rich quick.

This speculative environment has driven the price of Bitcoin to absolutely insane heights in recent months, but now it is starting to fall.  After hitting a record high of $64,829 in the middle of April, Bitcoin fell to almost $30,000 on Wednesday before bouncing back a bit…

Bitcoin plunged 30% to near $30,000 at one point on Wednesday, continuing a major sell-off in the cryptocurrency markets that began a week ago.

But don’t feel too bad for Bitcoin investors just yet.  Bitcoin is still up more than 30 percent so far this year, and overall it is up close to 300 percent over the past 12 months.

Other cryptocurrencies that have also soared in recent months took a huge bath on Wednesday

Other cryptocurrencies also plunged on Wednesday. Ether, the digital currency that powers the Ethereum blockchain, was down more than 22% at $2,620.97, according to Coin Metrics. Dogecoin, a cryptocurrency that started as a joke and has been talked up by Tesla CEO Elon Musk, fell 25% to less than 36 cents. Both had substantially larger losses earlier in the session.

Dogecoin is the poster child for the wild speculation that I so often deride on my websites.  It was started as a joke, it is a useless waste of digital space, and it has no inherent value whatsoever.

But at this moment the market cap for Dogecoin is still over 40 billion dollars.

I really wish that I would have started up a cryptocurrency called “Chickencoin” when this craze was first getting started.  It would probably be worth 100 billion dollars by now.

Sadly, at this point the opportunity to get rick quick has passed, because the bubble is starting to burst.  On Tuesday, China set off a wave of panic when a major announcement about the use of cryptos in the country hit the news wires…

The China Internet Finance Association said it will not allow the country’s financial institutions to partake in any business related to cryptocurrency due to the volatile nature of the digital coins, according to a Chinese media report Tuesday that was spotted earlier by Coindesk. This decision isn’t new. China took a similar stance back in 2017, which also resulted in a massive Bitcoin selloff.

The newest crypto investors are the ones that are being hit the hardest.  Many of them got in near the top of the bubble and now they are paying a great price for it

New entrants to crypto are especially running for the exits, according to a note from Glassnode Insights. About 23% of crypto wallets are now at a loss, and 1.1 million of the addresses have spent all coins they held during this correction.

Needless to say, this is taking an enormous emotional toll on many people.  On Reddit, some users were even posting the telephone numbers for suicide hotlines

People on Reddit trading boards described losing their shirts and some people even posted telephone numbers for a suicide help line in case the losses led to hopeless feelings.

Some investors have gotten rich by investing in cryptos, but others are literally losing everything.  On Wednesday, those that had made huge leveraged bets that cryptos would keep rising got absolutely monkey-hammered

As of Wednesday afternoon in New York, about $9 billion of liquidations of leveraged bets had taken place in the previous 24 hours, according to data provider Bybt. The majority were of long positions in which traders bet on an increase in the price of bitcoin or another cryptocurrency. Such liquidations take place when the market moves against a trader who isn’t able to exit from the trade or post enough additional funds to meet the exchange’s margin requirements.

For the moment, the losses on the stock market seem quite tame by comparison.  The Dow has declined for six of the last eight trading sessions, and it was down another 164 points on Wednesday…

The Dow Jones Industrial Average closed down 164.62 points, or 0.5%, Wednesday, paring an earlier drop of as much as 587 points, as investors broadly retreated from riskier assets. The index has fallen in six of the past eight sessions.

But there is a whole lot more chaos going on under the surface.  As Zero Hedge has pointed out, “in the past 7 sessions, stocks have suffered 3 of the largest bouts of concentrated selling pressure in history”.

Insiders and wealthy investors have been bailing out of stocks at a staggering pace recently, and many believe that this summer will be a very troubled time for stock investors.

But whether it happens sooner or later, it is inevitable that the stock market bubble will burst as well.

The Ponzi scheme that we call “our financial system” is destined to fail, and that should be obvious to everyone at this point.

Unfortunately, many self-deluded “investors” will stay in the game until it is far too late, and they will lose everything as a result.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Another Sign The Bitcoin Bubble Is Ending? China Launches An Unprecedented Crackdown On Cryptocurrencies…

Those that sold their cryptocurrencies at the peak of the market made a tremendous amount of money, but those that hold on to the bitter end are going to be gravely disappointed.  For a while there, it seems like cryptocurrency prices were going to go up forever.  2017 was the best year for cryptocurrencies ever, and lots of investors were becoming millionaires on paper.  But now the “Bitcoin bubble” has burst, and the losses are absolutely staggering.  Unfortunately for crypto investors, it looks like things are about to go from bad to worse, because China has just launched an absolutely unprecedented crackdown on cryptocurrencies.  Potential government intervention was always the “elephant in the room” for cryptocurrency enthusiasts, and now it is becoming a reality in a major way.

How would you feel if the value of your investments fell by 75 percent in just 7 months?

Well, that is precisely what has happened to cryptocurrency investors.  The following comes from the New York Times

After the latest round of big price drops, many cryptocurrencies have given back all of the enormous gains they experienced last winter. The value of all outstanding digital tokens has fallen by about $600 billion, or 75 percent, since the peak in January, according to data from the website coinmarketcap.com.

Sadly, this could potentially be just the beginning of big trouble for the cryptocurrency industry.

China has not completely banned cryptos yet, but they appear to be moving in that direction.  As Robert Wenzel recently noted, the crypto crackdown in China is becoming very intense…

Financial officials in an eastern district of Beijing issued a notice last week to stores, hotels and offices urging them not to host any cryptocurrency related speeches, events or activities. The document also asked that any activity be reported to local officials and said authorities were acting on behalf of a working group led by the central bank to clean up cryptocurrency trading, reports The Wall Street Journal.

In a commentary published in state media on Friday, according to the Journal, Sheng Songcheng, an adviser to the People’s Bank of China, said that after fundraisings called initial coin offerings were banned last year, government regulation will become even more restrictive. He wrote that earlier this week, authorities blocked a number of public accounts involving ICOs on the popular messaging app WeChat.

In addition, we have just learned that China has decided to permanently block over 120 offshore cryptocurrency exchanges

More than 120 offshore cryptocurrency exchanges have been blocked by Chinese authorities, the South China Morning Post reports. The exact reasoning is not entirely clear — the central bank didn’t respond to calls from SCMP reporters — though some speculate that the crackdown is a response to increasing financial risk and instability.

The government will continue to monitor for any new crypto news sites and announcements of Initial Coin Offerings (ICOs). If any appear, the government will shut them down immediately and deny user access by blocking their IP addresses.

That is an absolutely devastating blow to the cryptocurrency industry.

On top of everything else, Chinese tech giants have decided to ban crypto-related transactions

In a move that will likely make it even harder for cryptocurrency aficionados to trade Bitcoin and its ilk in China, the mobile payments titans of the country have barred crypto-related transactions.

WeChat Pay and Ant Financial’s Alipay are monitoring their platforms for transactions related to cryptocurrencies, with WeChat saying Friday that it would prohibit users from sending funds related to such digital assets on its social media platform. Its a notable move, Chinese citizens have rapidly adopted the technology. Over $12 trillion changed hands via mobile in the first 10 months of 2017 alone in the Middle Kingdom.

A coordinated effort to kill the cryptocurrency industry in the second largest economy on the planet appears to be well underway, and this is going to have very serious implications for cryptocurrency prices.

Meanwhile, the cryptocurrency industry just suffered another blow at the hand of U.S. regulators

The U.S. Securities and Exchange Commission has rejected another round of attempts to list exchange-traded funds backed by bitcoin, blocking ETFs from ProShares, GraniteShares and Direxion, on concern prices could be vulnerable to manipulation.

In a trio of orders posted on the agency’s website Wednesday, the commission said proposals to allow the funds failed to show how exchanges seeking to list the products would “prevent fraudulent and manipulative acts and practices.”

For a long time I have warned that the ultimate fate of the cryptocurrency industry was going to be determined by what national governments decided to do.

They seemed to have a “hands off” policy for quite a while, and the cryptocurrency industry thrived.

But now a global crackdown has begun, and it could ultimately mean the death of the entire sector.

This article originally appeared on The Economic Collapse Blog.  About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

War On Cryptocurrencies: Wells Fargo, J.P. Morgan Chase, Bank of America, Citigroup And Capital One Have Banned Their Customers From Buying Bitcoin With Credit Cards

A war on cryptocurrencies such as Bitcoin, Ethereum, Ripple and Litecoin has begun, and it threatens to destroy the entire cryptocurrency industry.  If you think that I am exaggerating, just keep reading.  Government agencies are cracking down hard, Bitcoin traders that don’t file the proper paperwork are being sent to prison, Facebook and other online ad platforms have banned all cryptocurrency advertising, and now major credit card companies are banning their customers from using their credit cards to buy cryptos.  What is an industry supposed to do if it can’t advertise and it can’t take credit cards?  Such moves would kill virtually any consumer-oriented industry, and right now the cryptocurrency industry is absolutely reeling.  If this war on cryptocurrencies continues to intensify, I honestly don’t know how the industry is going to survive.

On Monday, another shot was fired in the war.  Wells Fargo formally announced that their customers would no longer be permitted to purchase Bitcoin and other cryptocurrencies with Wells Fargo credit cards

Wells Fargo customers can no longer buy cryptocurrencies such as bitcoin on their credit cards, the company announced Monday. But they can still buy firearms.

The San Francisco-based bank joined some of its Wall Street peers in banning the purchase of cryptocurrencies on credit cards and said its decision is “in line with the overall industry.”

Of course this follows decisions by virtually all of the other major credit card companies to ban cryptocurrency transactions as well

J.P. Morgan Chase, Bank of America and Citigroup announced in February they would no longer let customers buy cryptocurrencies using credit cards, and like Wells Fargo cited credit risks and market volatility.

Capital One Financial said it has decided to ban cryptocurrency purchases with its cards, and Discover Financial Services has effectively prohibited cryptocurrency purchases with its credit cards since 2015.

All of these banks are deeply tied in to the existing world order, and obviously the elite have decided that now is the time to make a move against cryptocurrencies.

In the online world, cash and checks are rarely used.  And so if people can’t use their credit cards to buy cryptocurrencies, what are they supposed to do?

There is always Paypal and other online platforms, but it is probably only a matter of time before they start banning cryptocurrency transactions as well.

And the same big banks that have already banned credit card transactions could very easily start banning direct bank transfers as well.

The 800 pound gorilla in the room has started to wake up, and that is really, really bad news for the cryptocurrency industry.

It is absolutely absurd for banks to be telling us what we can and cannot buy with our own money, but unless somebody does something they are going to get away with it.  A few of them have even started putting restrictions on gun transactions, and they will keep pushing the envelope until they are stopped.

Meanwhile, government agencies have decided that now is the time for a crackdown on the cryptocurrency industry as well

The SEC investigation, which Bloomberg reported last month, is the U.S.’s latest effort to crack down on the booming Bitcoin and cryptocurrency industry and will look into illegal practices that can influence prices.

On Friday the Wall Street Journal reported U.S. government investigators demanded several bitcoin exchanges hand over trading data, putting the price on the back foot ahead of today’s sell off.

Federal prosecutors are working with the U.S. financial regulator that oversees derivatives tied to Bitcoin, the Commodity Futures Trading Commission.

And it isn’t just the exchanges that are getting hit.

Individuals that have not filed the “proper paperwork” with the government are being arrested and sent to prison

This week in Southern California a Los Angeles woman who called herself the ‘Bitcoin Maven’ will be sentenced this Monday after pleading guilty for illegal money transmission. According to law enforcement, the woman made close to $300,000 USD annually by selling BTC on the peer-to-peer exchange Localbitcoins.

U.S. law enforcement has arrested and convicted another Localbitcoins seller who reportedly made $300K per year selling digital assets. The 50-year-old Theresa Tetley used the alias ‘Bitcoin Maven’ and sold bitcoins without registering with the financial authorities. Prosecutors say Tetley’s operations “fueled a black-market financial system in the Central District of California that purposely and deliberately existed outside of the regulated bank industry.”

So where do things go from here?

Are these just temporary bumps in the road to a promising future for the cryptocurrency industry, or is this the end of the road?

Well, cryptocurrency evangelist John McAfee believes that now is a perfect time to buy more coins…

“Do not panic about the drop in Bitcoin’s price. It is an overreaction to the news that Bitstamp, Coinbase, itBit, and Kraken are being investigated for price manipulation. This will delay the bull market by no more than 30 days. Don’t buy into the fear. Buy the coins.”

On the other hand, Mike Adams believes that we are witnessing the collapse of a Ponzi scheme that was always destined to implode at some point…

Even though Bitcoin is clearly an electricity-wasting Ponzi scheme built on zero real assets, some newbies are just now hearing about it, and they think they’ve discovered a perpetual motion get rich quick scheme that will allow them to acquire wealth without effort. (This is, of course, the key selling point among Bitcoin speculators, who have convinced themselves they’re actually “shrewd investors.”) In truth, they’re just being suckered into a collapsing crypto-fairy tale that never panned out because it was based on bad economics in the first place. Remember when Bitcoin enthusiasts promised that Bitcoin transactions would be extremely low cost and almost instant? Yep, and Obama said if you like your doctor, you can keep your doctor, too. Both promises turned out to be utter nonsense.

If the major banks and governments around the world had left the cryptocurrency industry alone, it probably would have done just fine.

But now a full blown war against the cryptocurrency industry has begun, and it is going to be exceedingly difficult for “crypto mania” to survive in this type of environment.

Michael Snyder is a nationally syndicated writer, media personality and political activist. He is the author of four books including The Beginning Of The End and Living A Life That Really Matters.

The Economic Collapse