Crypto Correction As Dalio Warns Of Possible US Bitcoin Ban

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Last Updated on 25 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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The crypto market is undergoing a correction, with all major coins down several percentage points. Bitcoin is trading near $53k while Ethereum is trading around $1,600. Over in the broader altcoin market the losses are far greater with Polkadot losing 14%, XRP near 9% and Uniswap 14%.

The first winner on the board was on CoinMarketCap’s place 21, where we find Filecoin, up 14%.

There are several reasons for the correction, but Ray Dalio’s interview seems to have really struck a cord.

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Corporate tax

Over in the stock market, the rout of the tech-heavy Nasdaq continued, with the index down some 2%. That move was mostly caused by comments of new Treasury Secretary Janet Yellen, who hinted that a possible higher corporate tax rate could be in the works.

With a new 28% corporate tax rate, the Democrats would in this way wipe out one of the major victories of the previous president, Republican Donald Trump.

Dalio warns of Bitcoin ban

The crypto market saw a slight uptick yesterday at first when Tesla boss Elon Musk announced his company would not only allow consumers to purchase their vehicles with Bitcoin, but that Tesla would also be storing the cryptocurrency and not convert is back into fiat money.

However, things took a turn for the worse when influential hedge fund manager Ray Dalio (who authored multiple best sellers as of late) warned that the US might impose a ban on Bitcoin, in a repeat move like the US government did in the 1930s to gold (when they imposed the Gold Reserve act of 1934).

Responding to the question whether a ban of Bitcoin is a possibility, Dalio stated:

Every country treasures its monopoly on controlling the supply and demand

They don’t want other monies to be operating or competing because things can get out of control. So I think that it would be very likely that you will have it, under a certain set of circumstances, outlawed the way gold was outlawed.

His comments come days after Fed Chairman Powell admitted Bitcoin could become essentially a substitute for gold.

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