Monday, December 6, 2021

Why Did Crypto Just Drop

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Solana Price Record Follows Remarkable Year

WHY DID CRYPTO DROP TODAY? IS CRYPTO ABOUT TO CRASH? CRYPTO NEWS TODAY

Solanas latest price surge has seen it reach above $2.40 for the first time in its history. The all-time high for Solana follows an astonishing year for the altcoin, which started the year trading below $2.

Its creators claim its fortunes are directly related to the potential of Solanas underlying technology, which they say includes the fastest blockchain in the world.

Literally the goal of Solana is to carry transactions as fast as news travels around the world so speed of light through fibre, CEO Anatoly Yakovenko said during a developer conference in September. Who were competing with is Nasdaq and the New York Stock Exchange.

You can read more about Solana and its remarkable rise right here.

Who were competing with is Nasdaq and the New York Stock Exchange, says Solana founder

How Much Is Bitcoin Worth Today

On Wednesday 27 October, Bitcoins price was trading down by roughly 6.5% on the last 24 hours falling from a 24 hour high of $63,064 to $58,500 as of 10.45 this morning.

At the time of writing, Bitcoins value was fluctuating at around $58,965.03, or £31,055.83 according to CoinDesk.

The Bitcoin dip could be a sign of traders pulling back from new all-time highs for the cryptocurrency and hedging their bets as market analysts project that Bitcoin could reach a landmark $100,000 threshold in the near future.

Crypto data aggregation platform, CoinMarketCap, recorded a near-40% increase in Bitcoins trading volume over the last 24 hours as of 11.15am, with the cryptocurrencys trading volume at $43,474,067,360.

Ethereum Seriously Undervalued At Its Current Market Cap Says Crypto Analyst Lark Davis

Ethereum

Crypto analyst and trader Lark Davis thinks Ethereum is massively undervalued with the potential to explode in the coming years.

In a new video, Davis compares Ethereum to PayPal, showing that Ethereum is already far outpacing the payment giant despite its smaller size in terms of market capitalization.

Now, PayPal is one of the worlds biggest online payment providers. So how does Ethereum stack up versus this payment giant?

Well currently, the market cap of PayPal $344 billion. So Ethereum is worth $100 billion less than the PayPal company is worth. Now you might think, Okay, thats a pretty bad comparison. PayPal, its such a huge company. It does so much more business than Ethereum.

Does it? Well, lets dig into the facts here.

Davis shows that in 2020, PayPal handled $936 billion in total transaction volume. Compared to Ethereum, Davis says PayPal isnt keeping pace. The second-largest cryptocurrency handled $1.5 trillion in total on-chain settlements in just the first quarter of 2021 alone, according to the crypto analyst.

So in just the first quarter, Ethereum did 50% more transactional volume than PayPal did in the entire year in 2020. Incredible. Its no wonder PayPal is starting to sell Bitcoin and Ethereum to their clients because theyre gonna get Blockbustered if they dont.

Read Also: How To Buy Bitcoin In Russia

How We Plan To Play The Crypto Markets

Lets go with what we know. Dominating global investor and consumer sentiment right now is the overhang of coronavirus. We see that headlines and news about coronavirus are driving the stock markets. And, in turn, the stock markets seem to be driving the crypto markets.

This will likely be the case for the next few months until the markets become desensitized to bad news. That would usually be a sign we are at the bottom. On a personal level, this is when online deliveries, social distancing, and complete lockdown start feeling like the new normal.

If we believe that the worst is yet to come, then we can assume that we will expect more bad news and more downward movement in the stock markets and crypto.

But here is the silver lining. At some point, we will reach the bottom. What goes up must come down.

And, if the fundamentals dont change, what goes down must come up. Such is the nature of the business cycle. And judging by the last recession the bottom could be 40-60% of pre-recession prices.

Lets throw in an additional premium for the added volatility and ultra speculative nature of crypto and lets say the potential bottom could potentially be -70% from Bitcoins pre-recession price of roughly $9,000 right before the drop . So, lets assume that BTC at ~$2,500 is still within the realm of possibilities. It is my personal opinion that this price is also very likely the bottom.

Why Is The Crypto Market Down Today

Why Did Crypto Drop Today : Why did Crypto drop? Profits ...

Prices go down because people place a lot of sell offers with ever decreasing prices to make sure their deal closes off shortly. Of course, some people are glad to accept the offers because they are optimistic that the prices will recover.

Instead of lamenting, Why is the crypto market down today? study the market for a real marker of a crash: did a crypto in question experience the largest growth before the current fall? If it did, it might signify that its price will never recover beyond that previous all time high.

For example, the fluctuations of April-May 2021 market prices stand in line with price predictions. So keep your funds and just try to live through it. Even top traders report the total value of their portfolio dwindle, which is inevitable when Ethereum alone lost roughly 30%.

So why is crypto market down today? A quick recap:

  • Elon Musk tweeted that Tesla stopped receiving BTC as payment because of high Bitcoin energy consumption, which resulted in high emissions.
  • The interpretation of that news by the majority of market players is their responsibility alone, not Elons. People started to sell.
  • Crypto skeptics keep the public in constant fear, and the public is even easier to manipulate as a result.

Even if the tweet never happened, the market correction could take place anyway. It could as well be connected to bitcoin price cycles and subtler reasons.

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Will Crypto Crash Again In 2021

Cryptocurrencies are continuing to increase in value, and so the question that everyone is asking is if there will be another crash? Opinions on this are certainly divided. Critics, including celebrated investor and CEO of Berkshire Hathaway Warren Buffett, predict that cryptocurrency will disappear completely, while supporters, including former Goldman Sachs executive Raoul Pal, predict it to continue to rise and revolutionize the financial market. Despite his U-turns, Elon Musk is another influential person who sees great potential in cryptocurrency, particularly Bitcoin, not just as an asset, but as a faster and more secure way to store and move money.

Cryptocurrency still has a long way to go, and as it adjusts to the market and makes improvements in speed, security, and carbon emissions, its value will certainly fluctuate. However, judging by its fast recovery and adoption by countries and major players so soon after its fall, confidence in crypto has prevailed. Additionally, its fast recovery despite a sudden loss of over half of its miners shows its robustness, as well as its miners versatility. Whether there will be another crash is uncertain, but with these indicators, it does seem as though cryptocurrency is here to stay.

When Was The Last Major Crypto Crash

In June, the Chinese Government cracked down on considerable crypto mining operations taking place in the Sichuan province and demanded that Chinese banks and payment channels stop supporting decentralised and anonymous crypto transactions.

This saw Bitcoin prices tumble to below $30,000 in a dramatic plummet from its soaring success.

The cryptocurrency has continued to rise and fall as other global administrations and regulators mull legislation to curb increased crypto activity often attributed to laundering and crime.

Following the Chinese states move, countries like South Korea also pledged to tackle the rise in money laundering taking place via cryptocurrency, while the Metropolitan Police announced that it had successfully closed in on a huge UK cryptocurrency money-laundering operation.

July saw the Met seize a cryptocurrency operation valued at £180million in the UKs largest cryptocurrency seizure to date.

In turn, cryptocurrency exchange platforms such as Binance have been feeling the heat across the world as regulators and governments have started to pay close attention to the operations of such platforms in the wake of the global crackdown on crypto.

The result of this saw Bitcoins highest prices sliced in half in June, with the coin struggling to break out of the low to mid $30k price range until it received a welcome boost from Tesla founder Elon Musk in his appearance at major Bitcoin conference in July.

Read Also: Where To Report Bitcoin On Taxes

What Did Elon Musk And Treasury Secretary Janet Yellen Say About Cryptocurrency

On Saturday, February 20, Musk may have unknowingly kickstarted the crypto plunge with a tweet declaring that the prices of Bitcoin and Ether “seem high”.

On February 8, Tesla bought $1.5billion worth of Bitcoin, which sent the value of the crypto soaring.

On Monday, February 22, Tesla’s shares slid by 8.6 percent, wiping $15.2billion from Musk’s net worth – which resulted in him losing his post as the world’s richest person – Bloomberg reported.

The crypto market was also spooked by skeptical comments from Treasury Secretary Yellen, who called bitcoin extremely inefficient and highly speculative.

It is a highly speculative asset and you know I think people should beware it can be extremely volatile and I do worry about potential losses that investors could suffer, Yellen reportedly said at a conference on February 22.

Crypto Price Gains In 2021 Calculated

Crypto Price Crash Why Did Bitcoin Drop 10k in One Night?

If youre wondering how much you could have made if youd invested in Solana at the beginning of the year, someone has already done the maths for you.

Solanas 16,000 per cent price gains since the start of 2021 mean that $1,000 invested on 1 January would have turned into $162,000 today. This is more than double what you would have from the same investment in dogecoin, and more than 80-times greater than bitcoins returns.

Of the top 10 cryptocurrencies, however, there is one that has performed even better than Solana. A $1,000 investment 10 months ago would have almost turned you into a billionaire by now.

Also Check: How Does Crypto Loan Work

Why Has Bitcoin Dropped

Bitcoin peaked in value on April 14, boosted by the major cryptocurrency exchange, Coinbase, going public.

But just four days later, it recorded its biggest drop in two months, following two major blows to the cryptocurrency market.

Turkeys central bank announced it would be banning the use of cryptocurrencies for purchases.

A blackout in Chinas Xinjiang region, which powers a lot of Bitcoin mining, meant the coin took a further hit.

It tumbled to a seven week low of $48,001, but started to rally after some mainstream businesses said they would let customers pay using more well known virtual currencies.

Why Is The Price Of Bitcoin And Other Cryptocurrencies Falling

May 24, 2021 / 9:17 AM / CBS/AP

Although the price of bitcoin has partly rebounded after last week’s rout, the digital currrency remains well off its April 13 high of nearly $65,000. In early trading on Monday bitcoin fetched $38,477, up 12% from the previous day, according to Coindesk.com.

The extreme volatility that has marked bitcoin’s emergence in recent years was on full display when its price plunged as much as 29% earlier this month after financial regulators in China banned domestic banks and other financial institutions from supporting bitcoin. That includes processing payments, allowing customers to hold bitcoin in their accounts and converting bitcoin into yuan or any other currency.

Such roller-coaster swings in bitcoin and other cryptocurrencies, which have also been buffeted of late, is raising questions about their risks as investments and viability as financial assets. Here’s what you should know.

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New Research Reveals Systemic Risk To Bitcoin As Its Price Crashes Under $60000

Bitcoin and cryptocurrency prices have rocketed this year, propelling the combined crypto market to over $2.6 trillion as Wall Street and mainstream investors flock to digital assets.

The bitcoin price has added almost 400% since this time last year, climbing to over $60,000. However, bitcoin has fallen sharply over the last 24 hours, dropping under the closely-watched $60,000 level.

Ahead of bitcoin’s price plummet, researchers found the cryptocurrency is still concentrated among a handful of holders, warning this makes “bitcoin susceptible to systemic risk.”

A daily newsletter for the crypto-curious. Helping you understand the world of bitcoin and crypto, every weekday

The bitcoin price has dropped under $60,000 per bitcoin after climbing from under $40,000 through … October.

“Our results suggest that despite the significant attention that bitcoin has received over the last few years, the bitcoin ecosystem is still dominated by large and concentrated players, be it large miners, bitcoin holders or exchanges,” analysts from the National Bureau of Economic Research wrote.

Its All Red Across The Market Today As Last Weeks Upward Price Action Is Largely Reversed

Why Is Crypto Down Today February 22 2021 / Stocks, China ...

Bitcoin crash. Image: Shutterstock

In brief

  • 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.

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Crypto Price Crash: Is This The Real Reason Behind The Brutal Bitcoin Ethereum Binance Bnb And Cardano Sell

    Bitcoin and cryptocurrency prices have fallen sharply over the last month, with the combined cryptocurrency market losing around $1 trillion in value.

    The bitcoin price dropped from over $60,000 per bitcoin to under $35,000 from mid-April through to mid-May. Ethereum, the second-largest cryptocurrency by value after bitcoin, lost half its value in just two weeks as its price tanked in the aftermath of the bitcoin sell-off while ethereum rivals cardano and Binance’s BNB also crashed.

    The bitcoin price dropped sharply last month after climbing steadily through the first few months of … 2021, with many other major cryptocurrencies, including ethereum, losing around half their value.

    “I think really just what happened last week was similar to what you’ve seen before, where the futures market and the swaps market was pretty levered up,” Roshun Patel, the vice president of lending at the bitcoin and cryptocurrency prime brokerage Genesis, told Bloomberg’s Odd Lots podcast.

    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.

    Also Check: How To Transfer Crypto From Coinbase To Coinbase Pro

    El Salvador Bitcoin Rollout

    New users were hindered from installing it, despite Bukele stating that a national digital wallet would be available to Salvadorans in the United States and anywhere else in the world.

    Any data they try to enter at this time will give them an error, Bukele wrote.

    This is a relatively straightforward problem, but it cannot be fixed with the system connected.

    The president had pitched the idea of adopting Bitcoin as a way to bring more Salvadorans, about 70 percent of whom dont have bank accounts, into the formal economy.

    He argued that it would make it faster and cheaper to receive money from family living abroad.

    The nation also uses the US dollar as legal tender which it adopted in 2001.

    Experts expressed concern about the hasty adoption of the new currency on a national scale in June, according to the New York Times.

    Why Are Cryptos Falling

    Why you should be using STOP orders (stop-loss) as a crypto trader!

    After topping $64,000 in April, bitcoin has struggled to reclaim its all-time highs since then following a series of events. It came under pressure in May after tech billionaire Elon Musk, who has driven traders into frenzies by mentioning cryptos at times, said Tesla will stop using Bitcoin as a form of payment over concerns of the cryptocurrency’s impact on fossil fuels.

    Since then, cryptos have gyrated as coins such as ethereum typically to move in tandem with bitcoin.

    In early June, bitcoin fell further amid concerns of its use in the Colonial Pipeline ransomware attack.

    Bitcoin, for instance, briefly touched $40,000 last week and fell again Monday after China’s central bank deepened a crackdown on cryptocurrencies. China’s central bank said it ordered some banks and payment firms, including China Construction Bank and Alipay, to crack down further on cryptocurrency trading.

    Bitcoin shed more than 10% on Monday, its largest one-day drop in over a month.

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