Cryptocurrencies Melt Down in a ‘Perfect Storm’ of Fear and Panic

The price of cryptocurrency also fell sharply. Bitcoin was as low as $ 26,000 on Thursday, down 60 percent from its peak in November, and rose slightly. Since the beginning of the year, the price movement of Bitcoin has been closely reflected in the Nasdaq, a heavily weighted benchmark towards technology stocks, suggesting that investors treat it like any other risky asset.

The price of ether also fell, losing more than 30 percent of its value in the past week. Other cryptocurrencies like Solana and Cardano are also down.

Some analysts said that any panic could arise. A study by Mizuho shows that the average bitcoin owner on Coinbase will not lose money unless the value of the digital currency falls below $ 21,000. Accordingly, Mr. Dolev, where true death can spiral.

“Bitcoin worked as long as no one lost money,” he said. “Once he gets back to that level, it’s the ‘Oh, my God’ moment.”

Business investors who have faced crypto volatility in the past have also remained quiet. Hunter Horsley, chief executive of BitWise Asset Management, which provides crypto investment services to 1,000 financial advisers, met with more than 70 of them this week to discuss the market. He said many were not selling, as each other’s assets were also down. Some were even trying to take advantage of the drop.

“His point of view is, ‘This is no fun, but nowhere to hide,'” he said.

However, falling prices have annoyed crypto traders. Just a few months ago, blockchain supporters predicted that the price of Bitcoin could rise to $ 100,000 this year.

Similar Posts

Leave a Reply

Your email address will not be published.