Thursday, June 23, 2022

Why Is Bitcoin Going Down

Five Risks Of Crypto Investments

BITCOIN CRASHING | Why the Crypto Market is Going Down | TIME TO BUY!? (China Bans Bitcoin AGAIN!)

BELOW we round up five risks of investing in cryptocurrencies.

  • Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
  • Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
  • Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
  • Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
  • : Firms may overstate the returns of products or understate the risks involved.

Whats Behind The Latest Bitcoin Drop

Many investors see Bitcoins price swings as part of the game, but volatility is tough for individual investors to deal with, Noble says. Like Yang, he warns against selling too fast.

While this recent drop is reminiscent of 2017s sell off, Bitcoins presence has grown a lot since then. New short-term investors who are selling their holdings in reaction to the drop may be influencing the continued dip in Bitcoins value, according to a recent report from Glassnode Insights, a blockchain analysis firm.

While fluctuations are expected, Noble says this swing is a bit out of the ordinary. I thought the market was maturing and these things would be less frequent and severe. Boy was I wrong, he says.

This particular drop was caused by a combination of factors that may have made this drop more severe, Noble theorizes, from excitement about low-quality coins, to negative remarks from Elon Musk, to Chinas latest crack down on crypto services. The accumulated response made this sell off all the more violent, says Noble.

He likens the drop to the stock market crash of 1987, from which the markets took months to recover. But because crypto moves a lot faster today than equities did in the 1980s, Noble says we may see a quicker recovery.

Dont panic and puke, Noble says. If you keep your positions small, you can try to tolerate the volatility.

Which Factors Influenced Early Bitcoin Trading

During Bitcoins early days, liquidity was thin, and there were very few investors in cryptocurrency markets. This state of affairs translated to wide price swings when investors booked profits or when an adverse industry development, such as a ban on cryptocurrency exchanges, was reported. The rise and fall of cryptocurrency exchanges, which controlled considerable stashes of Bitcoin, also influenced Bitcoin’s price trajectory.

Events at Mt. Gox, one of the worlds first crypto exchanges, especially contributed to mercurial changes in Bitcoin’s price in 2014. For example, the price tumbled from $850 to $580, a decline of 32%, after the exchange claimed to have lost 850,000 bitcoins in a hack and filed for bankruptcy in February 2014. Even earlier, in December 2013, rumors of poor management and lax security practices at Mt. Gox had caused a steep drop of 29% in its price.

The other important factor affecting Bitcoin’s price in its early days was traction with mainstream online retailers: Its price crossed the $1,000 threshold in January 2014 after online retailer Overstock announced that it would begin accepting Bitcoin for purchases.

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How Much Oversight Is There

Washington officials have been talking about regulating digital currencies more, and worries about a heavier hand have played a role in the recent swoon in prices.

Gary Gensler, who took over as chairman of the Securities and Exchange Commission last month, has said that cryptocurrency markets would benefit from more oversight to protect investors.

In a hearing before the House’s financial services committee earlier this month, Gensler said neither the SEC nor the Commodity Futures Trading Commission, which he used to head, has a “regulatory framework” for trading on cryptocurrency exchanges yet. He said he thought Congress would ultimately have to address it because “there’s really not protection against fraud or manipulation.”

Is Bitcoin Done Going Down Yet The Chart Holds Clues

Why Bitcoin is going down?

At the end of last week, stocks were looking vulnerable, but so too were cryptocurrencies.

Ethereum gave an early weekly-up rotation, but bitcoin was lagging the No. 2 cryptocurrency . It couldnt rotate like ether.

Instead, it broke down later in the week just as the stock market did. In fact, bitcoin fell more than $6,000 from its Friday high to the session low, then collapsed on Saturday.

It fell almost $12,000 from peak to trough that day. From the all-time high less than a month ago, bitcoin was down $27,000 a coin, or 39.2%.

Bitcoin is again lower on Monday, but its currently bouncing off the lows and is down less than 1%.

Still, fear is lingering after this weekends price action. There are concerns about inflation, the Covid omicron variant, and stocks, which all tie into the risk-on theme of cryptocurrencies.

Lets see if the charts can provide any clarity.

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Risks Of Crypto Investments

THE Financial Conduct Authority has warned people about the risks of investing in cryptocurrencies.

  • Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
  • Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
  • Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
  • Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
  • : Firms may overstate the returns of products or understate the risks involved.

Following the ban, Brits have been having trouble withdrawing and depositing money into their Binance accounts, according to reports from the Financial Times.

The UK isn’t the only one getting tough on crypto.

Many crypto-mining regions in China are radically reducing operations.

Miners create new cryptocurrencies using a complex computer code in a complex process, which is highly energy intensive and requires a lot of computer power.

Bitcoin then started plummeting within minutes.

Doesn’t Elon Musk Have A Role Here

Yes, and a fairly big one. Musk announced in February that his electric car company Tesla had invested $1.5 billion in bitcoin. In March, Tesla began accepting bitcoin as payment. Those actions contributed to the run-up in bitcoin’s price, and Musk also promoted the digital currency Dogecoin, which also spiked in value.

However, Musk reversed course in just a short time, saying last week that Tesla would stop accepting bitcoin because of the potential environmental damage that can result from bitcoin mining. The announcement sent bitcoin falling below $50,000 and set the tone for the big pullback in most cryptocurrencies.

A number of bitcoin fans pushed back on Musk’s reasoning. Fellow billionaire Mark Cuban said that gold mining is much more damaging to the environment than the mining of bitcoin.

A 2019 study by the Technical University of Munich and the Massachusetts Institute of Technology found that the bitcoin network generates an amount of CO2 similar to a large Western city or an entire developing country like Sri Lanka. But a University of Cambridge study last year estimated that on average, 39% of “proof-of-work” crypto mining was powered by renewable energy, primarily hydroelectric energy.

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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.

Should I Invest In Cryptocurrency

bitcoin news – why is bitcoin going down 2020

People invest at their own risk and cryptocurrencies are not regulated by British financial authorities.

All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to lose everything you invest.

The Financial Conduct Authority warned in January: Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors money.

If consumers invest in these types of product, they should be prepared to lose all their money.

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Could A Digital Currency Selloff Cause Broader Economic Damage

Regulators aren’t very worried about a possible crash in digital currencies dragging down the rest of the financial system or economy.

Even with the recent sell-off, digital currencies have a market value of about $1.5 trillion, according to the website coinmarketcap.com. But that pales compared with the $46.9 trillion stock market, $41.3 trillion residential real estate market and nearly $21 trillion Treasury market at the start of the year.

The European Central Bank said Wednesday that the risk of cryptocurrencies affecting the financial system’s stability looks “limited at present.” In large part, that’s because they’re still not widely used for payments and institutions under its purview still have little exposure to crypto-linked instruments.

Earlier this month, the Federal Reserve said a survey of market contacts found roughly one in five cited cryptocurrencies as a potential shock to the system over the next 12 to 18 months. That’s a turnaround from the fall, when a similar survey found none mentioning cryptocurrencies.

Which Cryptocurrency Prices Are Down

Bitcoin is currently trading at $51,433 at the time of writing – up by around 2% since yesterday, according to Coinmarketcap.

Other cryptocurrencies, such as Ethereum and Cardano, have also dropped.

Ethereum, the second-largest cryptocurrency, is down by about 1.69% over the past 24 hours at $3,394, and Cardano has fallen 1.69% to $2.15.

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Opensea Confirms Insider Trading On The Nft Platform

OpenSea, the largest NFT, or nonfungible token, platform, confirmed that one of its employees was taking part in an insider trading scheme.

“Yesterday we learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly,” the company wrote in a blog post on Wednesday.

In OpenSea’s written statement, it called the incident “incredibly disappointing.”

OpenSea would not confirm the name of the employee to CNBC.

As CNBC reported, since NFTs exist in a legal gray zone, this incident doesn’t appear to be illegal.

Why Is Cardano Down Today

Why Bitcoin Is Going Down : Bitcoin Is Not Bearish Though ...

Cardanos price fell by more than 9% on Wednesday after US cryptocurrency exchange, eToro, announced that it will soon be delisting the coin for US users due to regulatory concerns.

“eToro will be limiting ADA and TRX for users in the US, the platform stated on its website on Tuesday.

US users will not be able to open new ADA or TRX positions starting on December 26, 2021.

Additionally, staking for those assets will end on December 31, 2021.

These changes are due to business-related considerations in the evolving regulatory environment.

The move has come as a shock to ADA investors as the cryptocurrency has not received as much scrutiny from other cryptocurrencies such as XRP, which has been subject to an SEC lawsuit since 2020.

It is believed that the move from eToro comes in the wake of the Infrastructure Bills passage into law and the threat posed to cryptocurrencies which could be deemed securities by the SEC.

While cryptocurrencies like Bitcoin and Ether function as a form of digital currency designed to be used as an alternative to the British Pound, US Dollar or other currencies, crypto assets as securities would be simply digitalised financial assets and subject to more regulation and taxation as a result.

According to Coinbase data, the 9% fall in Cardanos price led to a 95% increase in trading volume on the last 24 hours on Wednesday with 68% of this accounting for Coinbase customers buying the dip and increasing their stake in ADA.

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Monday Blue Why Bitcoin Fell Over 5% Today

2 min read.Livemint

  • Bitcoin price today slumped with traders moving from away from riskier assets over worries about the Omicron variant
Listen to this article

After a bruising weekend over lower liquidity, Bitcoin had little respite on Monday as it tumbled nearly 5% with traders moving from away from riskier assets over worries about the Omicron variant.

At one point over the weekend, Bitcoin lost over a fifth of its value. The world’s largest cryptocurrency was last down 4.01% at $47,432. Ether, based on Ethereum blockchain, meanwhile, slumped over 6%.

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Bitcoin has recently hit an all-time high of about $69,000 and the three-day rout sent the price back to where it was in early October.

Traders said the weekend fall was connected to a broad move away from riskier assets in traditional markets over worries about the Omicron variant of the coronavirus, combined with lower trading liquidity that tends to plague cryptocurrencies at weekends.

“Our expectation is the rest of Q4 will be a hard month we aren’t seeing the strength in bitcoin that we generally see after one of these crushing days,” said Matt Dibb at Stackfunds, a Singapore-based crypto fund distributor

“Leverage markets have been completely reset, and open interest within leverage markets has completely reset.”

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On Sunday, one ether rose to as high as 0.086 bitcoin, its highest since May 2018.

What Is Happening To Bitcoin

Bitcoin, and those invested in it, 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 April2021: Value hits a record high of $63,375
  • 22 June 2021: Falls to under $30,000 for the first time in 5 months
  • 2 August2021: Bitcoin rallies to its highest level since May at $40,000
  • 23 August 2021: Price returns to above the $50,000 mark

So what is happening? Well, lots.

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What Is The Price Of Bitcoin And Ethereum

The price of Bitcoin was £35,847.74 after the latest drop in prices , according to Coinbase.

Ethereums value is now £2,972.72.

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.

Why Is Bitcoin Going Down: Why Is Btc Price Crashing

Why Bitcoin Likely to go DOWN

Cryptocurrency prices fell again over the weekend. BTC price decrease is associated with power reduction of mining in China. Due to pressure on the mining of digital currencies, it has already been banned in five provinces. This is one of the reasons why Bitcoin going down is quite a common occurrence nowadays.

BTC rate fluctuated over the weekend due to a drop in hashrate in the Bitcoin mining network in China. Five provinces of China have banned mining centers in their territories by June 20. Bloomberg experts say that miners migration from China in the near future will lead to the sale of cryptocurrency reserves.

Why is Bitcoin going down? Are there any other reasons to know? Today, well try to find out!

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What Are The Risks Of Investing In Cryptocurrencies

Investing in cryptocurrencies is essentially gambling and there are no guarantees that you will see what you pay in go up in value.

Cryptocurrencies are VERY high risk and a speculative investment, with limited track records and no underlying value.

There is also no guarantee that you can convert crypto assets back into cash, as it may depend on the demand and supply in the existing market.

Cryptocurrency firms aren’t regulated in the way that other financial firms are, meaning you won’t have any protection if things go wrong.

Experts advise that you should never invest in something if you don’t understand it.

Crypto News: Why Is Bitcoin Down Today 17 Things For Btc Investors To Know

News from China is likely affecting BTC today

Crypto news for Tuesday includes Bitcoin trending down and traders want to know why thats happening today.

Lets dive into the crypto news that has BTC down today below!

  • To be clear, its not just Bitcoin that is down today.
  • Other cryptos are also sinking lower as well.
  • That includes Ethereum .
  • Part of the decline other cryptos are seeing could have to do with Bitcoin falling.
  • BTC is the largest crypto so when it declines, others follow along its path.
  • The drop in crypto, including BTC today, is connected to several bits of news.
  • Among that is China promising to continue its crusade against crypto miners in the country.
  • The issue at hand is the high energy consumption that crypto mining requires.

BTC was down 5.8% over a 24-hour period as of Tuesday morning.

Theres more crypto news worth diving into below!

InvestorPlace has crypto traders covered with our daily dives into the space. For Tuesday, that includes everything traders need to know about Floki Inu , , and VeChain today. You can find all of that at the following links!

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