The whole crypto market suffer a drop more altcoins did more than other, reasons? To many at least.
Bakkt did prove institutional investors are not interested meaning Bitcoin influencers got you.
The hashrate flash crash, some say electricity outrage, some other say difficulty is too hard profits to little and finally some governments are cutting the plug in mining operations. I would say all of them are the reason. I would say that if price keeps on dropping so will hashrate.
What is to come?
Altcoins in total are bearish because they together have broken mayor supports so altcoins will continue to drop and since Bitcoin only utility is to buy or sell altcoins so Bitcoin will come down together with the altcoins.
Once tether gets owned by the attorney general than right after that another drop for the whole crypto market.
Whales and exchanges were using tether and stable coins to manipulate the price and to also avoid paying taxes, once the creators of that coin get caught by the government they will have to buy or sell in register exchanges that do pass your data to the government and so the price will drop.
The truth is Bitcoin is in turn boiling water, government and its institutions are actively attacking all cryptos, they will not outright ban it they will just kill it by thousands cuts and the current scaling issue won't help it either.
Example let say a recession hits and people want to use Bitcoin as a currency well you are fuck because than your tx will get to $50 for tx really quick, so in a crisis current Bitcoin won't help you, you won't be able to exchange btc for good and services in a crisis like situation. Don't believe me in Venezuela they are using fucking dash. So if Bitcoin won't help you in times of crisis that means the store of value bs it is just lies for you to be the last sucker holding while whales and influencers get out.
The fact that government want to tax your holdings in cryptos should be enough reason for price to fall to $200 again, and current bitcoin blockstream versión is 100% making sure government can track you and tax you, current version of Bitcoin Blockstream version will sell your ass if the government ask right away.
Let me explain.
If you can't use Bitcoin as currency that means that you are forced to use as store of value meaning the only tx you will be willing to paid will be between your personal wallet and your exchange, making the government jobs easy, if you use it as currency than more people will use the system making harder for government to track your movement. That is why limiting the block size and store of value go together the less you use the coin the easier it is for any institution bent on tracking you easier.
Also if the tx fees are too high only rich users will be able to use shuffle services to hide their tx.
Lighting won't help you either because the LN nodes can be censored because nodes can choose to who and who can connect to you. The truth is exchanges can start creating their own nodes and only accept nodes that are kyc with them. In the on-chain nodes the only way for nodes to stop listening to your node is if your node is not in consensus meaning I want to mine 2mb blocks when the whole network says 1mb.
With LN nodes you just need to change some parameters and there you have it censorship because you are not kyc.
AND DON'T TELL ME IT US NOT TRUE BECAUSE YOU WELL KNOW THAT WITH LN NODES IT US POSSIBLE TO DO JUST AND IF IT IS POSSIBLE SOMEONE WILL SURE DO IT, SPECIALLY IF THE GOVERNMENT SAYS SO.
You can bet your ass that services like, Cobo Wallet, wallet of Satoshi, coinbase and any exchange or company if the government says you will only connect and accept connection from only kyc nodes you can bet your ass companies will comply right away taking with that Bitcoin lighting network futures.
With on chain scaling they will have to say to each individual that running software on their own devices is forbidden risking a people's revolution or at least making visible how currupt the govt actually is.
LN between regular users won't work at least not yet because people are not willing to exchange Bitcoin in a peer to peer basics. And blockstream supporters are actually busy telling people that they shouldn't spend their btc making people hesitate so even if ln get ready by the time a crisis hits all of those years of indoctrination by blockstream will paid of and people will not create channels between themselves but only to wallets and exchanges.
As a matter fact if I create a channel the only utility for such channel will be with an exchange or an exchange wallet because one I would not like to spend my btc and the other because their is no real people accepting it. That will help to ln centralization because people just will open channels to centralized services.
At least with on-chain scale you get you use it to a peer to peer even if it an exchange and the network rules are the consensus in ln you can choose to who to connect and you can block nodes as well.