Cryptogeddon - Bitcoin Breaks Below $7,000; Ether Down 75% From Highs
Content adapted from this Zerohedge.com article : Source
The carnage in the cryptocurrency world continues, going even lower since Friday's close.
Once again there is no clear catalyst but headlines from crypto world include South Korean and Thai regulators preparing to unveil their crypto-tax proposals (and notably the maze of details surrounding US tax requirements for cryptos may also be forcing some unwinds to cover unforeseen 'costs').
The Kazakh National Bank has banned crypto-mining and The FBI has issued a warning regarding fraud and cryptos.
Bitcoin went through the support level of $8,000 last week. Now, we see it crashing down through $7,000 meaning it is off 67% from the all-time highs.
Ethereum fared even worse down 75% from the high. This is the lowest market cap for the second largest cryptocurrency since November 2017.
While it is only prudent and smart for anyone entering the crypto space to proceed with caution especially when it comes to trading and investing in crypto assets, it would be unfair to be totally dismissive of what the Blockchain technology has brought about. The parallels with the dotcom bubble should serve as lessons to stakeholders.
One must remember that the aftermath of the dotcom bubble also affirmed that truly innovative organizations and technologies could weather the storm. Companies such as Amazon and eBay proved that pairing novel ideas with good business acumen can lead to success. Surely, the situation today with crypto and the environment of dotcoms from nearly twenty years ago would have their differences. Ventures must be able to navigate these nuances in order to make the best possible decisions moving forward.
Time will tell what comes of the cryptocurrencies that are on the market today. It stands to reason that some will be like Amazon and Ebay. Others will suffer the fate of groceries.com.
Non-adapted content found at zerohedge.com: Source
I completely agree with you. Time will tell. My guess is that you do believe in bitcoin and ETH. Just as I do, if not more. Just a few days ago, I bought bitcoin and ETH. And if it goes lower, I will buy more. I’m not sure what it is that makes me so excited about investing in cryptocurency, perhaps it’s the history that assures me it will go up again. We had these taugh times at least six or seven and it always went back up and much higher. Just like people said when bitcoin was at 20K “this time is different” many of them are saying the same “this time is different” they think they have a good reason to sell or stay on the sideline, because they say it will go to zero or it’s over for crypto. I say, it’s a mistake. This time is not different, it’s just another correction just like many times before. Most importantly, I can’t wait when it finaly turns around. Right now I’m excited to be able to take an advantage of these discounted prices.
This feels like it will be a multi-year bear market unless we get more regulatory jurisdictions come out with defined and reasonable regulations and crypto-friendly attitudes.
This is an amazing time to be alive and well informed about crypto markets.
This is, very likely, the lowest all of this coins will be... so if you are thinking on making a good investment with a lot of potential and risk involved, then this is the time.
Personally I think this is only the confirmation of what all the reads on the charts indicated, reaching very close of the last low ($6K) and then we will stabilize on the strongest support line, until we break out to the moon, whenever it happens.
Indeed this is a lesson that people have got to be cautious when entering the crypto space.. especially when it comes to the amount of money one is investing. Gaining in this market is speculative to some extent which is why people should invest what they are willing to lose. Cryptocurrency is yet to reach a level where it is easy to trade between people and for products and services. Many people rushed to invest when the prices were heading to their peak at the closure of last year. The most affected of these by the dip are those that are still holding the coins they went all in to buy. But all hope is not yet lost.. I maintain their is no need to panic. Blockchain is the future of this world. Blockchain technology is being incorporated in many fields of profession, which is improving service delivery as it's fast and efficient. As more of these technologies continue growing, people will be adapting to them more which will increase the use of coins thus increase in their prices. People that are still holding their coins will laugh last when this time comes.
Speculative
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