Which Crypto Prices Are Down
Bitcoin wasnt the only cryptocurrency to feel the initial effects, with most of the top 10 all experiencing dips in value.
Dogecoin, which was initially set up as a joke in 2012 before seeing its shares skyrocket, has also dropped while Solana has seen its market price rise by more than 8%.
Musks influence cannot be underestimated as, even though the likes of PayPal, Mastercard and have backed cryptos, the Tesla announcement still rocked the market.
A message from the editor:
Thank you for reading. NationalWorld is a new national news brand, produced by a team of journalists, editors, video producers and designers who live and work across the UK. Find out more about whos who in the team, and our editorial values, and , and keep the conversation going. You can also sign up to our email newsletters and get a curated selection of our best reads to your inbox every day.
What Are The Prices Of Ethereum Shiba Inu And Cardano Today
With cryptocurrencies often moving in tandem with Bitcoin, Ethereum, the cryptocurrency synonymous with the rising crypto trend of NFTs, was trading down by 11% on Thursday after hitting a new record high of almost $5,000 in early November.
Ethereums price has dipped below its $4,000 threshold and was trading at $3,237.38 at 8.36am on Friday morning, in a further 5% fall on the last 24 hours.
The hype surrounding popular memecoin Dogecoin has likewise been fluctuating in recent months as new alt and meme coins have stolen the spotlight.
What If Youre Interested In Crypto But Havent Yet Invested
Yangs set it and forget it approach to crypto reflects his philosophy for investing in the traditional stock market, but some experts feel cryptocurrency is too different from traditional investments to draw any historical comparisons. Thats why AShira Nelson of Savvy Girl Money is staying well away.
Nelson primarily invests in low-cost index funds because I can see history on that, she says. The newness of cryptocurrency and lack of trackable data make her wary of these crazy swings.
Potential investors looking to buy the dip should understand that fluctuations are par for the course, and be prepared for this kind of volatility going forward. Even if you invest now, with prices relatively low, be prepared for them to fall even more. Again, only put in what youre comfortable with losing after youve covered other financial priorities, like emergency savings and more traditional retirement funds.
Read Also: Will Crypto Make Me Rich
Melania Trump Celebrates Bitcoin Anniversary
Among those celebrating the 13th anniversary of bitcoins genesis block yesterday was the unlikely figure of Melania Trump.
The former First Lady noted that bitcoins market cap is over $1 trillion, and took the opportunity to plug her own recently-launched NFT endeavour with the hashtag #MelaniaNFT. Her first offering on the NFT platform was a digital watercolour painting of her own eyes called Melanias Vision.
Her husband Donald is not such a fan of cryptocurrency it seems, after claiming in an interview last month that crypto is very dangerous and a threat to the US dollar.
Renewed Predictions For Bitcoin Price To Hit $100000 In 2022
The founder of crypto platform Nexo is the latest industry figure to predict bitcoin will reach six figures this year.
Antoni Trenchev said told CNBC that the $100,000 price target for bitcoin, which many analysts believed it would hit in late 2021, remains in play for 2022.
Every time that investors and the broader community write off bitcoin, it outperforms significantly, he said. This has been the case in 2020 when it rallied close to 1,000 per cent and in 2021 where it rallied 63 per cent. Im quite bullish on bitcoin.
Read Also: How To Day Trade Crypto On Binance
Heres Why Bitcoin Will See Another 80% Crash Next Crypto Winter According To Quant Analyst Planb
Quantitative analyst PlanB is saying that Bitcoin will experience a severe bear market despite claims to the contrary by other experts.
In a new interview on business and investment YouTube channel FamilyOffice, PlanB highlights a few signals telling him that Bitcoin will eventually venture deep into bear territory.
First of all, Im one of the few that indeed thinks that there will be a next bear market, a crash like weve seen a couple of times before. A lot of people right now are saying that were done with the four-year cycle, and we will not have that kind of volatility and that kind of deep bear markets anymore.
I think we will have those bear markets. You can see it in the option prices. Its priced in at 100% volatility. A couple of months ago when China abandoned mining, we went down 50% or more. So we almost had it. We had a crash of 50% right there. So that tells me that 80% when something really big happens is not out of the question yet.
PlanB says that the next crash is likely to happen after Bitcoin reaches the price targets of his stock-to-flow and stock-to-flow cross-asset models. The stock-to-flow model predicts an assets price by dividing the supply that already exists with the new supply entering the market annually.
Meanwhile, PlanBs stock-to-flow cross-asset model looks at Bitcoins phase transitions from proof of concept to a financial asset in order to come up with a valuation for BTC.
What Are The Bitcoin Projections For 2021
This is the kind of question that starts arguments at dinner parties. Will Bitcoin rise this year? Will it fall next year? Who knows? What is the Bitcoin price prediction? Even though Bitcoin and its technology are very useful and are changing the world, anybody that claims to know whether the price of Bitcoin will rise or fall is a liar. Sorry, but thats the truth.
I strongly believe that blockchain technology and cryptocurrencies are the future. This is why I believe the price of Bitcoin will increase this year even more. This is what I believe, but I can never know. All I can do is guess and make Bitcoin predictions. You can look at the charts, you can look at the news, but you can never know for sure.
While talking about Bitcoin price predictions there are people that say Bitcoin is a bubble like the dot-com bubble that happened when internet companies stocks started increasing in price back in the late 1990s. They said that Bitcoin will burst in 2021, meaning they think it will crash. However, since Bitcoin has reached its all-time high at the beginning of 2021, it doesn’t seem to be crashing.
In the dot-com bubble, the stocks got to really high prices. But when the bubble burst, the stocks went straight back down to low prices. The people that bought the stocks when they were at high prices, lost most of their money. This is why it is important not to invest more money than you can afford to lose.
Also Check: How To Get Started On Crypto
Why Did The Crypto Market Crash
On Wednesday, 19 May, People’s Bank of China told financial institutions that they should ‘resolutely refrain’ from providing services to digital currencies because of their volatility.
As this news surfaced, the crypto market crashed. However, it is not unusual for the value of Bitcoin to change in such a short time period. Earlier, in December, Bitcoin closed under $30,000 but only after 3 months the prices rose to $65,000.
Speaking to The Quint, Ashish Mehta, Co-Founder, DigitX explains the panic in the market which may have been triggered by about three major rumours which may have impacted the decision of the sellers:
Tesla-Musk conundrum:Tesla recently announced that it wouldnt favour Bitcoin on ‘environmental’ concerns because Bitcoin mining requires electricity which is mostly generated using fossil fuels and therefore has a huge carbon footprint on the environment.
However, this seems to be motivated and raises a few questions like didn’t the Tesla management already know about the Bitcoin mining before diversifying into it? Doesn’t Tesla cars run on the same electricity generated using fossil fuels?
The reiteration of a previously imposed Chinese restriction of 2017 did some good amount of damage as a fresh imposition of prevention of participation by financial institutions into the crypto space by the Government of China.
Will Bitcoin Crash Again
If more countries create regulations/laws for cryptocurrency, more bad news will be published. This means we may see Bitcoin crashing again. Countries such as South Korea, Japan, China, France, and the United States all want to create new regulations.
Even though they want to create new regulations, we must remember that:
This could take a long time.
It might not affect the price of Bitcoin.
Until then, the most popular Bitcoin projection is that it will continue to rise.
Also Check: How To Read Charts Crypto
Oil Prices Surge To Three
Again it is a fairly strong hypothesis to believe bitcoin will moon and double, triple, quadruple etc, but that is not a hedge against inflation, that is a one-way bet on asset appreciation. Bitcoin can move in a day what inflation might move in a year, and the level of inflation that would represent would bring wide financial panic.
Maybe its just semantics, but while you will surely outperform inflation if the bulls are correct, that performance will have little to do with the effect or inflation on the sort of depreciation that fiat is going to undergo in the next few years. If bitcoin was actually to act as an inflation hedge, most holders would be extremely disappointed.
While it might take 5 years to cut the value of money in half, anyone who has been watching can see 10%+ being cut off the value of bitcoin in the last 24 hours.
So where is bitcoin going now?
The bulls will continue to say to the moon and you have to say that bitcoin and crypto in general has been extremely strong, and this chart shows their thinking in a nutshell:
The bitcoin chart shows it could go to the moon
For a bear like me the future should look more like this:
The bearish view of where bitcoin could go
Both being extrapolations from about a week ago.
However gut wrenching todays action may be it doesnt leave a bearish chart:
A likely scenario for the future of bitcoin
First Spot Bitcoin Etf
A big development crypto investors are on the lookout for in 2022 is approval of the first spot bitcoin exchange-traded fund in the United States.
Although the Securities and Exchange Commission greenlighted the launch of ProShares’Bitcoin Strategy ETF this year, the product tracks bitcoin futures contracts rather than giving investors direct exposure to the cryptocurrency itself.
Futures are financial derivatives that oblige an investor to buy or sell an asset at a later date and for an agreed-upon price. By tracking futures prices instead of bitcoin itself, experts say, ProShares’ ETF could be too risky for novice traders, many of whom are invested in crypto.
“The Bitcoin Futures ETF that launched this year has been widely regarded as not very retail-friendly given the high costs involved of rolling over contracts which amounts to around 5-10%,” said Vijay Ayyar, vice president of corporate development and global expansion at crypto exchange Luno.
“Increasing pressure/evidence points to a Bitcoin Spot ETF being approved in 2022 mainly because the market is now large and mature enough to support one.”
Also Check: How To Send Crypto From Coinbase To Wallet
The I Newsletter Cut Through The Noise
Bitcoin and other leading crypto coins experienced a significant drop in share price after investors began dumping mining equipment as China announced fresh regulations.
- Bitcoin -3.21%
- Binance Coin -4.76%
- Solana -8.21%
- SHIBA INU -3.59%
- Polygon -3.47%
It follows recent crashes brought on by Tesla making a u-turn on accepting Bitcoin as payment for its products and China clamping down on initial coin offerings, block exchanges and warned against speculative trading.
A further blow was dealt when China ordered Bitcoin mining in its Sichuan province to shut down completely and furthermore told banks to stop supporting crypto transactions, in a latest wave of restrictions on cryptos.
Now the countrys central bank, Peoples Bank of China, has effectively banned digital coins after announcing all transactions of cryptocurrencies are illegal.
The decision has already had an impact on the global crypto market.
This is whats going on in the world of cryptocurrencies…
Why Is Bitcoin Down Today
Bitcoins price enjoyed a bullish rise to near $70,000 in value in early November as investors hoped to see the cryptocurrencys $1 trillion market cap remain firmly in place ahead of a volatile trading period.
But its plummet below $50,000 came in late 2021 as US and UK markets struggled to contend with renewed concerns over Covid-19, the Omicron variant and high inflation.
The latest fall in Bitcoin price came as a sharp sell-off ensued on the Nasdaq index on Wednesday , with the US central bank poised to lurch away from its coronavirus pandemic monetary policies with interest rate hikes and a potential cut to securities in order to shrink its balance sheet.
500 points were wiped from the tech-heavy Nasdaq index following the release of minutes from the US Federal Reserves latest meeting in December in which expectations for a reduction in policy accommodation shifted forward notably.
The Nasdaq dropped 500 points and was trading down by approximately 3.34% to close at 15,100.17 on Wednesday.
The impact was also felt across other US stock indexes, with the Dow Jones Industrial Average trading down by approximately 1.07% and the S& P500 was down by 1.94% on Wednesday.
But the cryptocurrency also took a major hit as crypto mining operations in Kazakhstan, which have proliferated since China outlawed cryptocurrency mining in the country, went down in a nationwide internet outage this week.
You May Like: Can You Buy And Sell Cryptocurrency Same Day Robinhood
The 2017 Bitcoin Rush
Until 2021, Bitcoins value reached its highest point in January 2017 when it hit $19,498.63. At this point, Bitcoin was one of the most talked about things in the media. Everyone you knew mothers, grandparents, school teachers, and doctors were all asking how high will Bitcoin go?. “Bitcoin price” and “Bitcoin price” predictions were two of the biggest trends on Twitter!
This media attention, or hype, caused Bitcoins price to increase more than it ever had before. It went way, way up. It was crazy! News reporters and financial analysts all made their Bitcoin predictions which made the public interested. More and more people were trying to buy Bitcoin and so the price increased.
Soon after that, Bitcoin Bitcoin’s price crashed.
|Quick note: ATH means All-Time High. It is the highest the price has ever been.|
The question when will Bitcoin crash? had finally been answered. When Bitcoin price prediction started to become smaller and smaller, millions of people were selling their Bitcoin and the price fell to under $10,000.
That’s a significant crash!
It took some time, however, Bitcoin managed to get back up again and in January 2021, its price increased significantly and reached its all-time high of $41,940.
History Suggests Reversions Are Commonplace
To begin with, history suggests that the crypto market is in trouble. Even though big upswings have occurred frequently over the past decade, reversions following these upswings are commonplace, too.
Since the March 2020 bottom, the total value of all digital currencies has jumped more than 14-fold to $2.14 trillion. This is somewhat similar to the 35-fold increase in total market value over roughly 10 months between March 2017 and January 2018. However, following the January 2018 spike, the aggregate value of all cryptocurrencies would go on to decline by just shy of 90% over the subsequent 11 months.
We’ve witnessed similar reversions in individual cryptos that delivered life-altering gains, as well. Popular tokens like Nano, XRP, and Litecoin produced peak short-term gains ranging from 24,000% to nearly 462,000%. All went on to lose 93% to 99% of their value in a 12-month to 26-month stretch.
The point is this: Trading euphoria always retraces in a big way in the cryptocurrency space.
You May Like: Why Cryptocurrency Is Going Down
Build Cash Flow Rather Than Sell
Now, the ideal situation is to build up cash flow rather than selling an asset. Bitcoin can last forever.
Your USD is only temporary as the value slowly decreases due to inflation.
Anyway, if you really need the cash, then you should do everything possible to earn money so you do not have to sell your bitcoin. This can include the following:
- Get a second job.
- Putting your bitcoin as collateral for a loan. Though this option can be somewhat risky due to the volatile price of bitcoin.
Blockchain Euphoria Outpaces Its Use Case
People have every right to be excited about the future potential for blockchain technology. DeFi offers the possibility of making almost instantaneous cross-border payments at low cost and can democratize the process to ensure even emerging-market residents can take part. There are also smart contract-based blockchains that can revolutionize supply chains.
But if there’s one constant with every single next-big-thing technology, it’s that investors always — and I mean always — overestimate how quickly a new technology or service will be adopted. We’ve watched it happen with the advent of the internet, business-to-business commerce, genomics, 3D printing, and now, blockchain technology.
While blockchain is exciting, it’s simply not widely adopted yet, nor anywhere close to broad-based adoption. Businesses are unlikely to jump at the chance to support large-scale projects until there’s evidence of its real-world effectiveness. Yet we won’t get this evidence until businesses welcome blockchain with open arms. It’s quite the conundrum/Catch-22 that could stall this monster rally.
Don’t Miss: What Does Volume Mean In Cryptocurrency