Why Are All Cryptos Down: The Other Reason
For this part, were going to lean on investment trend expert, Matthew Carr. He saw all of this coming. Way back at the beginning of 2020, he predicted an explosive couple of years for Bitcoin and its brethren.
I think Bitcoin, with a reward halving just months away, is going to be more explosive in 2020.
As we all know now, Bitcoin did just that. And it kept up that momentum through most of 2021 as well. Aside from the occasional push in the other direction from China, of course. But even despite the downward pressure from Chinas banking, securities and foreign exchange regulators, Bitcoin managed to hit an all-time high. But that high note was a brief one. It has since retreated more than 35% in value. And most altcoins have followed suit.
But now, the bull run, may give way to the bears. If youll excuse a little FUD, the reward halving isnt built to last. As Matthew Carr puts it:
that bull will transform into a bear in 2022. This is another four-year cycle that weve seen play out time and time again.
Certainly some food for thought there.
Why Did Crypto Collapse
The model of decentralized currency appeals to some. However, as a practical matter, a central regulatory authority controlling currency can in many cases be useful.
Cryptocurrency is having a rough week. After noted billionaire, Tesla CEO and cryptocurrency fan Elon Musk grudgingly admitted that Dogecoin, 2021s most successful coin, was a hustle during his Saturday Night Live appearance on May 8, the price of the currency abruptly collapsed, from an all-time high of 74 cents to a low of 27 cents two weeks later, a decrease of 270 percent.
Other cryptocurrencies were soon to follow. Ethereum collapsed from $4500 to under $2000 Bitcoin, the largest and most successful token, fell from nearly $60,000 to $32,000 over the same time frame. These wild fluctuations have caused many of cryptos gains since the beginning of 2021 to evaporate, and although their prices are beginning to recover, billions of dollars have been lost. With this in mind, it is worth exploring cryptocurrencys potential drawbacks, potentially offering clues for why it collapsed in the first place.
It Was Never Worth Anything, to Begin With
Its Bad for the Environment
The trouble with this is that these computers are tremendously expensive to run. They are also enormous energy consumers. It has been estimated that mining Bitcoin alone consumes more energy worldwide than the Republic of Argentina.
Trevor Filseth is a news reporter and writer for the National Interest.
Fluctuating Current Cryptocurrency Prices On April 6 2022 For Crypto Investors
There is a red flag in the highly volatile cryptocurrency market for those crypto investors who invest huge amounts of money in Bitcoin and many others in the top ten cryptocurrency list. Cryptocurrencies like Ethereum tend to drop its prices today. Thus, crypto investors should check out the top ten current cryptocurrency prices before making a smart investment.
Analytics Insight lists the top 10 current cryptocurrency prices on April 6, 2022
Bitcoin – US$45,315.56
Ethereum – US$3,353.48
Tether – US$1.00
Binance Coin – US$443.07
USD Coin – US$1.00
Terra – US$117.45
Solana – US$125.36
XRP – US$0.812
Cardano – US$1.15
Avalanche – US$90.41
According to CoinMarketCap the current global cryptocurrency market capitalization is US$2.09 trillion, a 3.92% rise in the past 24 hours with a market volume of US$111.52 billion.
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What Could Happen Next
David Keller, chief market strategist at StockCharts.com, told Forbes: While this weeks drop in Bitcoin has been severe, the downtrend in Bitcoin has been well-established since November 2021.
This pattern of distribution has pushed the price down below the early December low around $44,000.
Price support should be expected between current levels and the September 2021 low around $40,000.
Collin Plume, CEO and founder of My Digital Money, added: If we take a step back and look at the bigger picture, Bitcoins recent volatility can be connected to the rise of altcoins such as Solana, NEO, and Cardano. These altcoins are distributing the interest of investors and creating a healthy and competitive market.
I suspect that once the dust settles around these altcoins, Bitcoin will regain its momentum in 2022.
What Are The Cryptocurrency Price Drops
Several major cryptocurrencies saw their values drop rapidly over the last 24 hours.
Bitcoin was worth $43,058.75 on Thursday morning but dropped to a low of $42,496 on Friday.
That constitutes a 40 percent drop from its all-time high set in November at almost $70,000, with a downward trend now picking up even greater speed.
Similarly, Ethereum dropped 12 percent to $3,411.92 and Solana fell 12% to $148.58.
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Bitcoin Cash Chart Analysis
From a technical standpoint, Bitcoin Cash seems very weak. The XBT/USD pair is trading below the 50 day moving average at $9,000 while the 100-day MA is hovering around the $6,300 level , indicating that a strong rally is not expected in the near future.
Even if Bitcoin Cash does manage to break above $10,000, it would require significant price action to sustain such a rise.Bitcoin Cash Price Forecast 2018:BCH/USD Long-term Trend: RangingSigns of the Bullish WaveBitcoin Cash chart shows that this market has been making lower highs and higher lows since early 2017. The last pullback was experienced in mid-November when the price dropped below the
What are some potential risks of this?
The cryptocurrency market started to drop in February because of short term technical failures, increased regulatory pressure, and the slowdown of China. These are some potential risks the market could face going into 2018. China and India are two the biggest countries that use the Yuan
How Will This Affect Bitcoin
The effects on Bitcoin should be manageable. In fact, it is not yet known how Bitcoin behaves when inflation is high. It is possible that high inflation could even fuel the Bitcoin price and give it a reputation as digital gold. The fact that there will be less liquidity in the market due to higher interest rates should only affect Bitcoin to a limited extent. Especially since interest rates are likely to remain comparatively very low even after the increases.
Overall, most of the inflation and interest rate risks are likely to be factored in by now. Little should stand in the way of long-term recovery of the Bitcoin price. If you are looking to buy the dip, check out Binance.
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Will Bitcoin Go Up If The Stock Market Crashes
Not necessarily. Supporters of bitcoin see it as a diversifier in balanced portfolios, but it did no better than stocks at the start of the coronavirus pandemic. This is because investors panic-sold everything.
In the first two weeks of March 2020, bitcoin went down over 40%.
That was when we saw all equity markets take an aggressive leg down because of concerns about Covid-19, notes Rosie Bullard, partner and portfolio manager at James Hambro & Partners.
So it wasnt exactly a store of value in an equity market reversal.
If you look back to March of last year when we saw the market collapse, you didnt see bitcoin suddenly rally in that period.
Rosie Bullard, partner and portfolio manager at James Hambro & Partners
That said, how crypto assets perform during stock market falls will depend on why financial markets have collapsed.
If it were an inflationary shock, such as we saw in 1974, most bitcoin investors believe it would provide protection.
If you want to read more about the alternatives to bitcoin, check out are article here.
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.
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Why Did Markets Crash
The plunge follows a volatile week for financial markets. Global equities and benchmark US bond yields tumbled on Friday after data showed US job growth slowed in November and the Omicron variant of the coronavirus kept investors on edge.
Justin d’Anethan, Hong Kong-based head of exchange sales at cryptocurrency exchange EQONEX, said he had been watching the increase in leverage ratios across the cryptocurrency markets as well how large holders had been moving their coins from wallets to exchanges. The latter is usually a sign of intent to sell.
“Whales in the crypto space seem to have transferred coins to a trading venue, taken advantage of a bullish bias and leverage from retail traders, to then push prices down,” he said.
The selloff also comes ahead of testimony by executives from eight major cryptocurrency firms, including Coinbase Global CFO Alesia Haas and FTX Trading CEO Sam Bankman-Fried, before the US House Financial Services Committee on December 8.
The hearing marks the first time major players in the crypto markets will testify before U.S. lawmakers, as policymakers grapple with the implications of cryptocurrencies and how to best regulate them.
Bitcoin Is Volatile By Nature
Adding to the equation is the heightened tensions with Russia over its military build-up around Ukraine.
Geopolitical concerns are driving market volatility in many tradable asset classes, and Bitcoin has proven to be somewhat correlated to broad market movements and less of a direct hedge against equity markets, said Reffett.
The trouble is that Bitcoin hasnt proven itself to be much of a hedge against anything. After all, with inflation at four-decade highs, youd expect a currency that purports to maintain its buying power and be independent of any central bank to gain more followers. If this description applied to Bitcoin, wouldnt demand be off the charts?
Instead, Bitcoin appears to find adherents when the price is rising, and produce doubters when sellers dominate. Like a risk asset.
This situation is nothing new. Its about the eighth time since 2009 that bitcoin has experienced a 50% drop from a prior all-time high. And you dont need to look far back in time to find the last big sell-off: Bitcoin fell below $30,000 in July 2021 after China cracked down on the mining of digital currencies.
Anyone that isnt ok with a decline of at least 50% should not be in Bitcoin, said Dr. Smith. Falls of 50% are completely normal for Bitcoin. Its the price of admission.
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What Is Happening To Bitcoin
Bitcoin has been on a rollercoaster ride of late, rising and falling sharply on the back of a number of news stories.
To summarise, these dramatic ups and downs over the past few months:
- 16 December 2020: Price hits $20,000 per coin for the first time
- 13 April 2021: Value hits a record high of $63,375
- 22 June 2021: Falls to under $30,000 for the first time in 5 months
- 2 August 2021: Bitcoin rallies to its highest level since May at $40,000
- 23 August 2021: Price returns to above the $50,000 mark
- 20 October 2021: Price goes up to $67,000
- 27 October 2021: Bitcoin crashes to $58,000
- 5 November: Reached record high of $68,521
- 4 December: Price fell to around 12% down to $42,000, falling nearly 30% peak-to-trough on a 24-hour basis.
Other Early Warning Signs
But to understand the dynamic that led to this years depressing year for crypto, we actually should start a few years before 2018. In bitcoins early days, Mt. Gox was the go-to service for handling transactions. Then, in 2014, it halted transactions and slowly copped to a crypto-hack to the tune of $473 million, the biggest hack of its kind at the time, and it gave many people pause. But it was still early enough for people to believe that the blockchain system was still getting all the technical kinks out.
But the hacks didnt stop. In 2016, the DAOa blockchain organization that was based on Ethereumlost what was worth $50 million at the time, due to a technical error someone seized upon. This, once again, sent shockwaves through the communitybut also had the unfortunate impact of normalizing these types of hacks for some people.
At the end of 2017 and beginning of 2018, more peopleespecially those in the mainstream finance worldwere paying attention to bitcoin and cryptocurrency trading. And in early January 2018, the Japanese exchange Coincheck disclosed a hack worth a whopping $534 million. This happened right around the time that bitcoin slipped from its peak value, and it certainly seemed to accelerate its drop.
Indeed, following its nearly $20,000 peak, bitcoin in early 2018 dropped to around $10,000 and hovered there for a while.
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How Can You Prepare For This Event
The Crypto Market is currently in the midst of a bear market. What exactly is going on? In short, its a period when the exchanges and prices are going down, but still, many people are no doubt feeling great about how much theyve made.
This market is usually followed by a price increase. So if you are wondering what you should do to prepare for the price hike, here are some tips:
Predictable Cycles Of Investor Sentiment
Finally, after six breakout, bullish news, and investor follow-through cycles, the final bullish breakout happened. That occurred on October 15, 2017, when Bitcoin closed at $5862.69. The coin leaped higher once again, drawing in fresh money. By November 26, 2017, Bitcoins weekly chart confirmed a parabolic uptrend as it closed at $9474.62.
Thats when the mania phase began. As mass greed replaced common sense, some new investors apparently lost the ability to calculate rational risk-to-reward outcomes. Fear of missing out morphed into get on-board at any cost . Once again, the positive feedback loop was at work. Bullish breakouts caused bullish news and opinions to gain ever more acceptance. Later-stage investors continued to buy into Bitcoins relentless, parabolic ascent with little regard to the danger of a blow-off top.
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What Are The Reasons Behind This
After the cryptocurrency peaked at $20,000 on December 17th, it has now dropped to $8,600. The market is starting to experience a lot of volatility as investors try to figure out what caused this crash. This is making many investors afraid and looking for other investment possibilities to analyze in order to make this risk worth it.
Bitcoin has fallen to $8,600
At the time of writing, Bitcoin is trading at $8,600. This shows a loss from the previous days value of $9,000. BTC is currently at a 14% drop in the last 24 hours. A similar pattern was observed on January 5th when BTC dropped by 13%. The current slide has been triggered by two factors: the introduction of more-risky assets and the increased hype surrounding the Bitcoin Cash fork.
Investors have begun to panic due to the fact that the two biggest players in the crypto market, Coinbase and Gemini, have announced that they are allowing their customers to trade the new cryptocurrency. A number of other exchanges such as Kraken, Bitfinex and Binance are also allowing trading in BCH for a limited time period.
The price is now back up to $9,000 but it is still very low compared to its previous high at $19, 000 when it was in the midst of a bull run. It is possible that this market move will be short-lived as Bitcoin Cash has not garnered much support and so BCH could soon fall back down to its old price range.
What Is Bitcoins Price Today
Bitcoins price is currently trading at $35,452.90 in a 9% fall on the last 24 hours as of 11.58am, according to Coinbase.
Bitcoin has been fluctuating between $36,000 and $38,000 in value this week after falling from its $40,000 threshold again on Sunday February 20.
But in the early hours of Thursday morning, Bitcoins price dropped from $36,887.71 at 2.30am to $34,787.94 at 4.30am, with this plunging even lower later this morning as its price dropped to $34,322 at 5.45am.
According to data collected by CoinMarketCap, however, Bitcoin is seeing increased trading activity with its 24 hour trading volume up 55.6% as of 12.03pm on Thursday at $37,439,624,337 as investors buy the dip.
Over the past few weeks, Bitcoins price has been fluctuating mostly between $40,000 and $45,000 hitting a recent high of $52,100 on December 27.
The major cryptocurrencys price has seen recent gains of almost $20,000 wiped off the board for Bitcoin after it came the closest it ever has to reaching a new landmark threshold of $70,000 in November.
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Peter Thiel Says Bitcoin Price Will Rise 100x
After throwing cash into the crowd, it turns out Peter Thiel had a lot to say.
It was too long for one blog post so I wrote it all up here.
TLDR: Bitcoin will replace gold and eventually rival the value of the entire stock market with a 100X price rise. Oh, and Warren Buffett is apparently enemy number and a sociopathic grandpa.
Peter Thiel, co-founder of PayPal, speaks during the Bitcoin 2022 Conference at Miami Beach Convention Center on 7 April, 2022 in Miami, Florida