Are Cryptos Right For You
First-time investors should proceed with caution. Piling all of your nest egg into something as volatile as cryptocurrencies poses big risks to your retirement, experts say. Wealth managers and finance experts have long been skeptical of these speculative investments for amateur investors due to their extreme swings.
In 2013, bitcoin began trading around $13 and spiked to more than $1,000 by December. In late 2017, the digital token surged to nearly $20,000, before crashing to almost $3,000 the following year. What followed was a dizzying rise to above $64,000 in April 2021.
Dogecoin has seen similar booms and swoons. It has ridden a similar Reddit-driven wave as stocks like GameStop and AMC in recent months, accelerated by a series of tweets by Musk, who was pumping the cryptocurrency.
Cryptos are now in 401s:Are they the right investment for your nest egg?
Even with the latest declines, the sharp rise in the value of bitcoin earlier this year has some analysts worried about a potential bubble in the cryptocurrency market, with bitcoin’s price at one point more than doubling since the start of 2021.
About 81% of fund managers polled in a recent Bank of America survey in June said bitcoin was still a bubble. Thats up from about 75% of managers who said so in May.
“Cryptocurrency traders, especially individuals, need to know the risks of what they own,” Royal added. “In some cases, the risks could be a complete loss of their investment.
What Is The Price Of Bitcoin And Ethereum
The price of Bitcoin was £45,397.96 after the latest drop in prices , according to Coinbase.
Ethereums value is now £3,326.33.
Cryptocurrencies are seen as an alternative to traditional banking methods, cheaper to move money around due to not being regulated by the government or its banks.
The decision by Tesla, and announced by Musk, was seen by some as a slight on the credibility of cryptos to become a viable method of payment against physical currencies.
The Crypto World Has Already Suffered A Lot Of Blows And It Is Difficult To Mark A Common Problem That Can State That Why Markets Are Crashing Down These Days
New Delhi: Crypto market is very volatile and we all are aware of that, here you can see large swings with no notice and thats why people find it very risky as you can witness a sudden fall.
An upward trend can do wonders but a downswing can leave you with less money than you invested in and you might even not be able to access your investment portfolio on the crypto exchange if it goes down heavily.
The crypto world has already suffered a lot of blows and it is difficult to mark a common problem that can state that why markets are crashing down these days.
Which coins prices are down?
A massive dump cryptocurrency market has sunk the values of popular coins including Bitcoin, Ether, DOGE, and SHIB. The whole market was painted red which have created a panic in investors minds.
The price of Bitcoin dropped roughly 11% while Ethereum and Dogecoin were down roughly 12% and 18%, respectively. This outage also dropped the shares of the blockchain-related firm
Why the crypto market is down?
The massive fall has been linked with El Salvadors implementation of crypto law which will see Bitcoin accepted as legal tender.
El Salvador bought 400 bitcoins worth around $20 million ahead of the launch which helped the BTC to go above $52,000 for the first time since May.
Some analysts have said that it is a rebound that lifted Bitcoin almost 75% since late July. The overall crypto market saw a fall of $300 billion in the past 24 hours
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Its All Red Across The Market Today As Last Weeks Upward Price Action Is Largely Reversed
Bitcoin crash. Image: Shutterstock
- The cryptocurrency market is widely correcting today, with a nearly 10% drop in market cap over the last 24 hours.
- Bitcoin has shed all of its gains over the last week, while Ethereum and Solana are still in the green over the past seven days as of this writing.
Prices across the cryptocurrency market tumbled early Tuesday, with Bitcoin and the wider market seeing a nearly 10% drop over the last 24 hours, according to data from CoinGecko. The combined value of the crypto market has dropped from above $2.4 trillion to $2.1 trillion, with Bitcoin itself now falling below a $1 trillion market cap.
Todays correction followed a full week of steady gains, with a 16% increase in overall market cap from August 30 to September 6. During that time, Ethereum inched closer to its all-time high marker, Bitcoin surpassed the $50,000 mark again, and Solana continually set new peak prices as its recent surge continued.
Solana is still up 38% on the week, as of this writing, while Ethereum is up about 2%. However, all of Bitcoins gains over the last week have been erased.
The sudden shift in market sentiment could be attributed, among other reasons, to a case of buy the rumor, sell the news related to El Salvadors anticipated adoption of Bitcoin as legal tender, which happened today. Bitcoins price continued to climb over the weekend in anticipation of the action, reaching levels not seen since Mays market-wide crash.
Prices Of Major Cryptocurrencies Continue To Drop Here’s How It Could Affect You
Cryptocurrencies have taken a beating over the past few weeks, with several of the biggest names in crypto plummeting. The price of Bitcoin is down nearly 50% since April, Ethereum has dropped by around 53% since May, and Dogecoin has plunged close to 60% over the past six weeks.
Stock market downturns are always nerve-wracking. But even the most volatile stocks don’t often fall as fast or hard as cryptocurrencies.
If you’ve invested in the crypto market, should you be worried about the most recent crash? Here’s what you need to know.
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Next Bitcoin Price Crash Will Be Shallower Than 80% Says Pantera Capital Ceo
Bitcoin price increases will also be less dramatic moving forward, the report suggests.
Bitcoins market tendency to crash by over 80% after logging strong bull runs might come to an end.
That is according to a new report published by California-based hedge fund Pantera Capital. In detail, the report notes that the recent periods of BTC price drops have been less severe than in the past.
For instance, in 20132015 and 20172018, Bitcoin crashed by as much as 83% after topping out near $1,111 and $20,089, respectively. Similarly, the cryptocurrencys bull run in 20192020 and 20202021 led to massive price corrections. Nevertheless, the scales of their retracements afterward were -61% and -54%, respectively.
Bitcoin bull and bear markets across its history. Source: Pantera Capital
Dan Morehead, CEO of Pantera Capital, highlighted the consistent drop in selling sentiment after the 20132015 and 20172018 bearish cycles, noting that future bear markets would be shallower. He explained:
I long advocated that as the market becomes broader, more valuable, and more institutional the amplitude of prices swings will moderate.
The statements appeared as Bitcoin renewed its bullish strength to retest its current record high near $65,000.
BTC/USD rallied above $60,000 for the first time since early May as the United States Securities and Exchange Commission approved the first Bitcoin exchange-traded fund after years of rejecting similar investment products.
Why Is Crypto Tanking Today
The first key driver of todays decline appears to be the El Salvadorian move toward adopting Bitcoin as legal tender. What was supposed to be a catalyst appears to be driving uncertainty in crypto markets today.
Well, the governments pre-loaded Bitcoin wallet with $30 for every El Salvadorian citizen, Chivo, hasnt gotten off to a great start. The government was forced to disconnect this wallet earlier today due to technical issues. Various tests are being run, and the government is looking to get this program started as soon as possible.
However, this certainly isnt a good first impression. Users in El Salvador who already may have been skeptical about Bitcoin may be less likely to use this wallet. Accordingly, investors bullish on Bitcoins ability to truly replace fiat money will have to wait to see how this plays out.
Additionally, various market pundits are calling todays price action in the crypto world a flash crash. Accordingly, concerns around how protracted this crash may be are circulating. Most crypto enthusiasts expect this flash crash scenario to be corrected in short order. However, time will ultimately tell where crypto valuations go from here.
On the date of publication, Chris MacDonald did not have any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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Bitcoin Ethereum And Dogecoin Fall As El Salvador Marked B
Bitcoin fell as much as 17 percent on Sep. 7 as El Salvador marked Bitcoin Day, or B-Day. The decline continued with the flagship crypto crashing more than 15 percent in the morning of Sep. 8. Other major cryptocurrencies fell alongside Bitcoin. Ethereum, Dogecoin, Cardano, Solana, and Ripple all fell more than 10 percent.
The crypto crash exacerbated the selloff in Uniswap , which had already been falling following a report on the SEC probe of the DeFi project. It didnt spare Litecoin, Ethereum Classic, or Stellar Lumens, either.
May 2021 Crypto Market Crash Explained
Bitcoin is in rally mode, posting its largest daily gain in six weeks as shorts covered positions over the weekend. Sentiment has shifted from extreme bearishness after a sharp correction in May and two months of consolidation between $30,000 and $40,000.
The crypto market crash in May seemed to be causing extreme fear among investors. With Bitcoin dropping below $35,000, all crypto experts, analysts, and investors wanted to know what lies in the future and where the crypto market is headed. Liquid has discussed some significant factors contributing to a decline in BTC and altcoin value in May 2021.
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The Crypto Market At A Glance
In the past 24 hours, most cryptocurrencies are in the red. The market as a whole lost more than 10%. The top losers are Filecoin , MDeX , and Ethereum Classic all losing around 20%. On the other hand, we can notice top gainers on such a red day like Near Protocol and Solana making 22% and 11% respectively.
1- Bitcoin : 9.2 %
Crypto Is Crashing Today But Bulls Are Buying The Dip
Todays crypto woes once again largely stem from Bitcoin. The crypto surged over $20,000 since late July in an effort to reach the same highs above $60,000 it saw earlier in the year. Recently, it came close to the $50,000 mark, and lots of bullish sentiment had built around Bitcoins return to form. Over the weekend, however, Bitcoin refused multiple times to cross the $50,000 threshold. This is prompting some to take profits and flee, thus lighting the fuse of a big crypto selloff.
Bitcoin is dropping 7.5% as a result of the big sell. Of course, this is prompting a flash crash due to Bitcoins market influence. Ethereum is dropping nearly 9%, as is Cardano. Meanwhile, Binance Coin is down nearly 10%. Nearly every coin of the top cryptos by market capitalization are trading down this morning.
Of course, crypto bulls are not concerned with crypto crashing today. Rather, they are rallying others to buy the dip, prompting a #buythedip trend on Twitter. Thousands of posts on the platform are calling for crypto holders to deepen their wallets with this buying opportunity.
On the date of publication, Brenden Rearick did not have any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Article printed from InvestorPlace Media, https://investorplace.com/2021/09/btc-eth-ada-bnb-why-is-crypto-crashing-today/.
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Billionaire Investor Warns Of An Inevitable Crypto Crash
by Christy Bieber | Published on Sept. 9, 2021
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Are crypto investors irrational? This billionaire and veteran investor thinks so.
Magellan Financial Group manages more than 113 billion Australian dollars in global equities and global listed infrastructure. So, its chief investment officer Hamish Douglass knows a little something about what makes a good investment — and what makes a risky one.
That’s why it pays to listen to his warning about the cryptocurrency market.
Douglass, who is widely believed to be one of Australia’s most successful fund managers, cautioned recently that it’s inevitable the crypto market will crash and that even Bitcoin, which is the most well-established of the virtual coins, is likely to see its value go to zero.
Here’s what Douglass had to say about why he believes the crypto market is doomed to blow up.
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“Giant stock market crash coming October,” Kiyosaki said last week. “Why? Treasury and short of T-bills.”
Kiyosaki said he isn’t planning on selling gold, silver, or bitcoin but warned he thinks they “may crash too”and pointed to China’s embattled Evergrande property developer as potentially exacerbating market volatility.
Bitcoin, ethereum and many other major cryptocurrencies have already surged many fold so far this year as investors pile into stock markets and commodities, partly in an attempt to avoid holding cash as inflation continues to climb.
The bitcoin price is up almost 300% on this time last year, with the ethereum price is up 700%. The combined cryptocurrency market has climbed from just over $300 billion to around $2 trillion.
Others have also cautioned the fast-approaching debt ceiling could roil markets that have soared to all-time highs this year.
“There has not been too much optimism in U.S. markets recently and the political outlook looks difficult as deadlines approach on the U.S. government’s $28.4 trillion debt ceiling which is again threatened with a breach unless legislators can agree to raise the limit,” Mihir Kapadia, the chief executive of wealth management company Sun Global Investments, said in emailed comments.
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Diem Is Going To California
over 5,000% increase in Google search volume.
Facebook-backed Diem, the project once known as Libra, is moving its operations from Switzerland to the U.S. as it announces a pilot for a USD stablecoin. Quoting an anonymous source, CNBC reported that the pilot could start later this year.
- The Diem Association, which has not disclosed the date for the pilots commencement, also announced that it would be partnering with Silvergate Bank, a San Diego-based, California-chartered bank that will act as the issuer of the stablecoin.
- Diem is withdrawing its Swiss Financial Markets Authority license and will be registering as a money service business with the U.S. Financial Crimes Enforcement Network.
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Facebooks much-anticipated foray into cryptocurrency finally appears to be going ahead, with the Diem project confirming that it will launch a stablecoin pegged to the U.S. dollar.
Formerly known as Libra, Diem has been a thorn in the side of lawmakers since the association publicly launched in mid-2019. As global financial authorities began to scrutinize Facebooks plans to launch the digital currency from the get-go, major partners such as Paypal, Vodafone and Visa promptly abandoned ship, and it looked as though the project could die as quickly as it had been announced.
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Will Bitcoin Recover
There are no guarantees when it comes to investing. As quickly as bitcoin falls, it can just as rapidly climb again.
There are a number of concerns about cryptocurrencies:
- Crackdowns in countries like China
- Environmental concerns
- Its price is based solely on speculation
Further regulation is seen as a threat to the decentralisation of crypto, which is impacting on price.
Bitcoins fans point to its positive qualities:
- Transformative technology which could revolutionise industries
- Simpler and cheaper transactions by cutting out the middle man
- Easier global trade
- Transactions are more confidential
- A safe store of value because it cant be printed or seized
- Bitcoin has been touted as an alternative to gold, meaning it could prove itself as a hedge against inflation
Given its volatile nature, it is possible that bitcoin will gather momentum again at some point in the future .
But no one has a crystal ball so its impossible to say for sure.
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