Wait, Bitcoin fell 25% during Q1, right? After hitting nearly $110,000. And all the excitement about a pro-crypto political environment? Surprise! If you think this proves we need more government intervention to "stabilize" things, you're missing the forest for the trees. Crypto’s growth wasn’t a dream come true either. Rather, it’s a combination of artificial stimulus and a necessary and painful market correction.
Pro-Crypto Is Still Government, Folks!
Let's be clear: "pro-crypto" policies are still government policies. When a government chooses to intervene, it is important to understand how that intervention may impact the health of the market. This might take the form of tax incentives, regulatory exemptions, or just providing an abundance of positive class-rings. The increase in trading volume since the adoption of this “pro-crypto” agenda? That all wasn’t organic growth; that was a sugar rush courtesy of artificial egregious optimism. And what happens after a sugar rush? A crash.
Think of it like this: you can't force a plant to grow faster by pouring fertilizer on it every day. Eventually, you'll burn the roots. The same principle applies to markets. Attempting to force growth via backdoor political machinery is a bubble, no two ways about it. The adult and necessary correction is simply the market’s method of expelling that poison.
Individual Responsibility, Not Nanny State
This isn’t some exotic new scheme for “protecting investors” from the consequences of their own decisions. Put consumer power back in the equation and let people vote with their feet. Let’s make sure they do so fully informed, without the faux security blanket that government-sanctioned “pro-crypto” policies provide. Instead, we should create an expectation that people will be responsible for their own risk assessment and actions. Whether or not you decide to dabble in crypto, make sure to read up on the risks before you invest. You need to do your own research. You have to be in a position where you know you’re going to be losing money. That’s the price of freedom—not making the buck stops here and it’s a price worth paying.
The government’s job isn’t to coddle you or promise you a return on your investment, it’s to let you be free to operate. It should ensure a level playing field for all, help enforce contracts, and punish fraud. Beyond that? Hands off.
Tariff Wars & Crypto Carnage: Coincidence?
Don’t believe the tariff war and Bitcoin’s Q1 crash aren’t connected. You never can do something like this without creating problems elsewhere,” said an official in one of the affected governments. Keep in mind that Donald Trump’s proposed tariffs are currently driving some major volatility in the Bitcoin market. When governments begin to toss tariffs around like confetti, it muddies the waters, upsets established supply chains, and shatters investor confidence. We know that the crypto market, like every other market, abhors a vacuum.
This is crony capitalism at its worst, a prime example of why free markets are always the better approach. When people are allowed to trade and invest as they wish, resources flow to where they can be utilized the best. That results in more efficient prices, and a more robust economy overall.
Look at the Finery Markets report. As Bitcoin crashed, we experienced a quintuple increase in crypto to stablecoin transactions. Retrospective on Q3 growth 56% YoY … stablecoin market cap A massive $230 billion. That’s capital flight, that’s people moving their assets to safety, hedging against the storm. That’s a legitimate and predictable market response, and not something that requires “fixing” on the part of regulators.
What's Next? Less Regulation, More Freedom
The knee-jerk reaction, as always, will be to call for more regulation, more oversight, more government intervention. That would be a mistake. These “pro-crypto” policies were intended to be beneficial, but they arguably contributed to the creation of this very crisis. More of the same won't solve anything. We need to let the market self-correct. And we have to avoid the temptation to micromanage every bump and bruise.
We need to embrace the volatility. We need to accept the risks. And we can only do this if we demand that our own government step back. Allow the free market to work its magic! The future of crypto, and by extension, the future of our economy, rests on it. The numbers are clear. The solution is simple: end the intervention entirely, and allow the free market to work its wonders again.
