Markets have taken a wild turn sinking just below $80,000 this morning for bitcoin and then rebounding to the $84,000 we see now. But is this one of those fake out rebounds or is there more to it? In this article we are going to take a look at some of the factors going on right now, why the sell off and what could happen next.

*This article is not financial advice and is for entertainment purposes only. Do your own research before investing and understand the risks.

Tariffs

Tariffs are playing a huge part in the overall economy at the moment. With 25% on Canada and Mexico set to start soon we could end up seeing things sink again as of early March when they actully kick in.

Are those prices already in however as we often see sell the news events happen in the past with other things in which the news rallies the token but when it actully happens the market sells off.

This could be the opposite thing where we know it's going to happen but it hasn't taken place yet thus it could now be priced into the markets.

What are you thoughts on that prediction?

If true then that means our prices of just below $80,000 could have been the bottom. But there's a lot of unknowns still happening.

While we know the government and people in power are pro crypto it seems like they are currently doing everything they can to crash the crypto prices and we are seeing on the backend that they continue to actully buy and stake more of it.

But even that while you think adds up doesn't because trump bought a ton of Ethereum just before that crashed harder than bitcoin.

Thus that speculates next we could still be in for a harder crash of things.

The Fear and Greed index is also flashing extreme fear at the moment which is down from the neutral just a month ago.

Overall the markets look like they are more so in a panic mode right now and we might see mid to low $70,000 as a possible before the markets start to turn around again.

Now being that the fear index is so high and the crash was so hard we could be seeing light here soon for another bullish case. With bitcoin being down around $80,000 now buying it now still makes sense for a lot of people as, as soon as we bull run to $100,000 or even $110,000 again like we have seen happen in the past that's a massive 20%-30% gain on the asset which any investor would take.

Legislation

Mainly what a lot of people, companies and investors are waiting for right now is when that legislation will pass. As soon as it does it seems like banks and other large caps will easily enter in the game providing not only massive liquidity but also tons of new capital for the assets to tap into.

Ethereum

Now the thoughts are that most of these new stablecoin style of assets will be releasing on the Ethereum network. So you'll most likely see every bank have their own token. However with regulations it's going to allow it to be fully backed by fiat at a 1:1 as it should be and also swaps to and from banks. Now these swaps will be near instant but I'm sure there will be fees and banks will be collecting these fees. I'm sure they will then stake some Ethereum themselves! Which is going to lead to some wild times in the sector and why I believe you need to continue to stack now before all the big wigs get in here.