Why Is The Cryptocurrency Market Down Today
- 4:30 ET, Jul 14 2021
THE cryptocurrency market has dropped again, proving the volatile nature of coins like Bitcoin, Dogecoin and Ethereum.
The price of Bitcoin, the biggest cryptocurrency on the market, is currently down by around 9% over the past 24 hours.
It is sitting around $43,429, according to Coinmarketcap, compared to its highest ever level of more than $64,000 in April.
The second biggest cryptocurrency, Etheruem, has also dropped in value in the last 24 hours along with other popular coins like Dogecoin, Cardano and XRP.
Cryptocurrencies are highly volatile, meaning their values often make large swings with no notice.
The extreme volatility and the accompanying sudden market falls are just one of the reasons that investing in cryptocurrency is a very risky business.
You can be left with less money than you put in, and the markets can shift in the blink of an eye.
You might not be able to access your investment if platforms go down and you could be left unable to convert crypto into cash.
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.
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.
Recommended Reading: Is Crypto Trading 24 7
The Five Worst Reasons To Be Trading Crypto
Wealthsimple Crypto now offers more coins and tokens than ever. But that doesnt mean everyone should be trading them.
Wealthsimple makes powerful financial tools to help you grow and manage your money. Learn more
Maybe youve heard that Wealthsimple offers more coins and tokens than ever including Uniswap, Aave, and Dogecoin. And you might think that means you should drop what you’re doing and start buying and selling these immediately. If you think thats our opinion though, you dont know us very well. Our opinion is more like: everyone who is thinking about buying crypto should drop everything and… learn about when and how and why they should buy crypto, and the risks involved, and how it can fit into a sound financial plan geared for the long term. Because even if you dont mind speculation , there are smart ways to do it.
All were saying here is that there are good reasons you should be using Wealthsimple Crypto and bad reasons. And to help you tell the difference, here are five terrible reasons to trade crypto.
1. Because you think the risk is the same for crypto as it is for buying AT& T stock
Nope. Not true. Because cryptocurrencies are speculative. Its a good word to know.
2. Because Im smart enough to keep all my crypto safe right here on my computer
3. Because you really need the money youre investing in crypto and youre counting on it to grow
4. Because youre pretty much for sure gonna get rich off this, and quickly
You Will Position Yourself Better For Opportunities In This Space
Sure, you can make and receive payments with a crypto account. You can use it to save. But the really big opportunities come with investing in crypto.
Just take a look at Bitcoin. If youd invested $100 in it just 5 years ago, by now that $100 would be worth $2 500. Or if youd got in really early with that $100 ten years ago, be worth $1.9 million.
The price of Bitcoin is still set to keep on going up. Sure, with blips here and there. And to be fair, probably not as dramatically as it did before. Other cryptocurrencies like Ethereum, Litecoin, Dash, Ripple and Lisk also have huge potential to grow, and bring great returns to savvy investors.
But to know which coins to invest in, and when you do need to get educated and get some experience under your belt. So why waste any time? Nows the time to get crypto-savvy and learn to spot the opportunities because you can be sure, there are huge opportunities waiting.
Also Check: Where To Buy Crypto Wallet
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.
You Need To Get Familiarized With The Technology
Its the biggest technological invention since the internet. So, if you re still not up to speed with it, youre behind. But the good news is, youre still in time to start playing catch-up.
Just like in the 90s, when the internet was taking off, there were those who resisted adapting to it. There will be those people with the blockchain and crypto revolution but do you really want to be one of them?
And just like we now rely on the internet for information and communications soon its going to be the same for financial transactions using blockchain. So if youre not familiar with using it yet nows the time what are you waiting for?
You May Like: Where To Report Bitcoin On Taxes
Why Is Crypto Down Today
One of the biggest fears of crypto investors is that their decentralized assets could become regulated. Indeed, China has recently announced its intention to do just that.
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.
Article printed from InvestorPlace Media, https://investorplace.com/2021/05/why-is-crypto-down-right-now-7-things-to-know-about-the-crypto-crash-today/.
The Moderately Risky Way
This is crypto so the low-risk, low-return move above was never the one driving the action.
Just after COMP began dispensing on June 15, the optimal trade was actually on stablecoins, which meant buyers were fairly protected from swings in the underlying assets.
Users were playing with USDC and tether , two stablecoins. If someone did basically the same trade now , theyd get more COMP but it also costs more.
The trade earns 8.0 COMP in a year. The deposits earn $349.50. The loan costs $866.25, though, for a loss of $516.75.
So COMP costs $64.60 in this scenario, and if it were all sold at the end of the year for $1,600, the user would net $1,083.25.
However, yield farmers have now shifted away from trading stablecoins. We saw an unprecedented uptick on the stablecoin DEX Curve last week but there was a giant falloff in volume there Monday, dropping from $110 million on Sunday to around $30 million.
Also Check: How Can I Buy And Sell Cryptocurrency
No One Controls Your Money
So if regular money is controlled by governments and banks who does control crypto? Well, the beauty of crypto is that its controlled by nobody and everybody at the same time.
Lets take Bitcoin. The code is stored in thousands of nodes that means the computers of tens of thousands people who voluntarily run Bitcoin software on their computers. Theres no central authority or mastermind behind it. All users effectively retain control. And its in everyones interests to keep the network active and healthy.
And running it this way has all kinds of advantages over banks. Like, banks are only open business hours of the country theyre based in. Blockchain functions non-stop. And banks payments can take up to 48 hours to clear Bitcoin transactions take between 15 minutes and an hour.
Its At An Early Stage And Already Disrupting Markets
Since Bitcoin was created in 2009, meaning that cryptos already over 10 years old. But nows the time its really taking off and the growth its going to see over the next decades is likely to be a whole load more exciting than what weve seen up until now. You could say, the stage were at now is like the internet in the 90s.
In fact, if you look at the numbers of people whove adopted cryptocurrencies over the last decade, it looks a lot like the adoption of the internet back in the 90s. Deutsche Bank have pointed out this similarity and they predict that adoption rates are going to keep on at the same rate as the internet after the 90s. In other words, its going to keep on going up in a spectacular way.
And just like the internets disrupted literally everything over the last twenty years were probably looking at blockchain doing the same over the coming decades.
Read Also: How Much Does 1 Share Of Bitcoin Cost
Its In Limited Supply And Cant Suffer From Inflation
Remember we talked about the way conventional currencies lose their value because of inflation? Theres a simple reason why crypto doesnt.
The supply is capped. This is written into the source code, which states that there will only ever be 21 million bitcoin produced.
Currently, 18.5 million Bitcoins have been mined. Quick explanation mining means when advanced computers crack complex math problems and unlock the Bitcoins stored in the code.
And even if new Bitcoins are still getting mined, theres a limit on this. Unlike with traditional money, when banks decide print it by the truckload. With Bitcoin, the number of new coins released slows down every four years, meaning the supply is limited. And thats the reason Bitcoin wont suffer from inflation.
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.
Recommended Reading: How To Pay For Something In Bitcoin
The Sudden Pullback Just Short Of A New $50000 High Surprised Many Investors Here’s What Probably Happened
btc feb 15 24hr
Bitcoin slumped early on Monday, soon after it had looked primed for a convincing move above $50,000.
The top cryptocurrency fell from nearly $49,000 to $45,926 during the early Asian hours and was last seen changing hands near $47,790 down 1.8% on the day, according to CoinDesk 20 data.
The decline surprised many investors, as a notable all-time high milestone had looked on the cards amid optimism generated by the recent wave of institutional adoption.
So what happened? Here are three reasons that may explain the sudden price pullback.
Why Is Crypto Down Today 17 Things We Know On Monday May 17
Musk just can’t keep quiet
Crypto is down today and InvestorPlace is looking into why the digital assets are taking a beating.
Heres what investors need to know about why crypto is down today.
- The fall of crypto is likely connected to Tesla CEO Elon Musk.
- In addition to that, fears that Ethereum co-founder Vitalik Buterin was planning to sell a large sum of crypto also resulted in a fall.
- These two factors are still affecting crypto prices today.
- However, theres more from Musk to take into account.
- Since his original Tweets against Bitcoin, the Tesla CEO has made additional comments.
- That includes Musk responding to a Tweet about Tesla selling the rest of its Bitcoin holdings.
- This caused some confusion among crypto investors about if the company still held Bitcoin.
- In a later post, Musk clarified that Tesla hasnt sold any Bitcoin yet.
Investors that are looking for additional crypto news are in luck.
Weve got a large variety of crypto news for interested investors. That includes coverage of Shiba Inu , Kishu Inu , and Hedera Hashgraph . You can learn more about these cryptos at the links below.
Recommended Reading: How To Buy Verge Crypto
Why Shiba Inu Is So Cheap
Why has Shiba Inu this cheap? Are Shiba Inu prices expected to rise in the future, and is it worth buying?
Well, Shiba Inu is cheap today because of a myriad of reasons, chief among them being its oversized maximum token supply, apparent lack of a real or perceived intrinsic value, and probably the fact that it is relatively new – barely 14 months old.
But we need to understand that low prices do not always mean that a cryptocurrency is lowly valued. Take Shiba Inu as an example. For the past week, its prices have been ranging between $0.000046 and $0.000063. But it still has a colossal market capitalization of $30 Billion.
Today, it is ranked in the top 20 of the largest cryptocurrencies by market cap, which is way ahead of some highly-priced coins like Maker and Compound, which have lower market caps.
But can we expect Shiba Inu Prices to rise again? And is now the best time to buy Shiba Inu tokens?
We will be answering these two questions in a moment hereinbelow and even help you decide if Shiba Inu is worth buying. But we first need to build context by looking at Shiba Inus backstory and going deeper on factors that kept its prices low even after an incredible price rally.
How Much Have Bitcoin Ethereum And Dogecoin Lost In Value
With Tuesdays losses, bitcoin has slid more than 50% from its all-time high above $64,000 in mid-April. To be sure, bitcoin is still up more than 200% over the past 12 months.
Ethereum has shed nearly 57% from its all time high of $4,356.99 in May while Dogecoin has shed more than 70% since it touched a record of about 73 cents last month, according to CoinGecko.
Read Also: How To Buy Crypto Ico
Bitcoin Cash Confusion On Coinbase
Employees work at the Coinbase Inc. office in San Francisco, California, U.S., on Friday, Dec. 1,… 2017. Coinbase wants to use digital money to reinvent finance. In the company’s version of the future, loans, venture capital, money transfers, accounts receivable and stock trading can all be done with electronic currency, using Coinbase instead of banks. Photographer: Michael Short/Bloomberg
On Tuesday, Coinbase announced it would support buying, selling, and trading Bitcoin Cash on its platform. Since the August fork, there has been major community in-fighting among the BCH and BTC camps regarding which is the “true” Bitcoin. Point being: energy is high around this discussion. Many have speculated that BCH would end up on Coinbase, but even conservative estimates in crypto circles were January 2018.
So it’s no surprise that the noticeable and seemingly out-of-the-blue gains made in BCH in the days and hours leading up to the announcement caused some on social media to cry “insider trading.” This resulted in Coinbase shutting down BCH trading within minutes to launch an internal probe into the possibility that insider trading occurred.
Cardanos Big Plan For Africa
Another important thing about Cardano is its ultimate goal. Like several other cryptos, this currencys goal is to improve the modern society. Because of this, ADA has put a lot of effort into helping Africa, with most focus on Rwanda and Ethiopia.
Cardano even signed a Memorandum of Understanding with the Ethiopian government, which will allow this crypto to educate, and then hire, new software developers from this country. This will be a big deal for Cardano since Ethiopia will eventually adopt it in their industry of agriculture. This was the first MoU of this type to ever be signed in Africa, and the education of future software developers will start in only a few months, in September of this year.
Apparently, ADA will be the first crypto to actually go big in the African market, and with it being nearly untouched, ADA will have a special opportunity to tap into all of its potentials.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //