According to numerous market observers, the most recent collapse in the price of bitcoin and other cryptocurrencies may be regarded as the moment the crypto-mania fever broke.
Cryptocurrency Bitcoin’s price plunged as low as $33,000 on Monday, wiping off more than half of its worth since reaching a top of approximately $69,000 in November 2021. According to the cryptocurrency valuation website Coin Market Cap, the aggregate worth of cryptocurrencies has dropped to $1.52 trillion, down from more than $3 trillion in early November.
The Federal Reserve’s decision to telegraph upcoming interest rate rises in December put cryptocurrencies into a tailspin, and they have since recovered. In the words of strategists, the pace and scope of the losses, which have wiped away more than $1 trillion in notional value in a few of weeks, are similar to those seen during the collapse of the Dot-com boom in 2000.
Many people who have observed prior financial booms burst believe that the warning signals are in place. Even more aggressive counter-rallying is giving rise to even more violent selloffs. The fear of missing out has been replaced by the dread of being exposed all of a sudden. In this example, enthusiasts have labelled cryptocurrency and similar technologies as part of a “Web3” age, but such claims are now being dismissed as naive.
This includes cryptocurrency prices recovering from a prior drop in mid-2021, which indicates the end of a time when they were overvalued due to speculation. Speculation of this nature frequently ends up looking more like a heavyweight prize bout. Before the final knockout, the asset may be knocked to the ground numerous times and then get back on its feet again. During the middle of 2000, for example, the Nasdaq Composite recovered from bear-market territory only to re-enter bear-market territory by the end of the year.
Available at: https://cryptobubbles.net/
Here’s what seven experts had to say about the latest drop in the cryptocurrency market:
What the Experts Say?
- Cameron Winklevoss
The president and co-founder of cryptocurrency startup Gemini, has this to say about his company on Twitter:
“Keep your cool and HODL…
In the event that you didn’t invest in Bitcoin because you ‘missed the boat’ when the price was $35k, you’ve just been offered another opportunity to do so. Avoid making the same error more than once.
Hang ON FOR DEAR LIFE is a slang term for “hold on for dear life.”
- Chris Burniske
The following is the Twitter handle of Chris Burniske, a partner at venture capital company Placeholder and co-author of the book Cryptoassets: The inventive investors’ guide to Bitcoin and Beyond:
When you descend into a bear, it’s like throwing an air-filled balloon down a flight of steps. “With each bounce, the audience gasps, expecting it to move higher, but gravity only goes in one way (at least for a short period of time.”)
- Lorenzo Di Mattia
In an interview with the Financial Times, the manager of hedge fund Sibilla Global Fund stated:
“I believe that we have reached the pinnacle of the bear market there.” Even if we disregard the possibility of government interference, the supply of new cryptocurrency is tremendous. There are around 17,000 of them in existence at the moment. The notion of a “limited supply” of bitcoin is unquestionably a fallacy. The creation of a limitless number of currencies with identical or even superior properties is possible, even if they are given a different name.”
- Edward Moya
In a message to customers from a senior market analyst at foreign-exchange firm OANDA Group, he writes:
In a short period of time, Bitcoin has transformed from a consolidation pattern to a house of agony. As a result of the recent stock market debacle and in anticipation of the FOMC policy meeting next week, cryptocurrency traders are de-risking their portfolios.
- Mark Arbeter
In an email from a technical analyst:
“For a 50 percent loss to be profitable, you must make a 100 percent gain to break even. As far as a fresh purchase is concerned, we do have oversold circumstances, and Bitcoin appears to be in a state of disarray. In addition to being close to its 100-week moving average around $31,600, the stock is approaching what might be extremely strong chart support just below the 30,000 mark. The only regions where I would consider investing would be in possible support zones.”
- Eloisa Marchesoni
In an interview, a cryptocurrency investor and consultant stated:
“It has the appearance of a bear market to me. The stock market is less of a game of [extreme] sentiment than other markets. While stocks are well-known around the world, Bitcoin and other cryptocurrencies are not. If I’m being optimistic, I believe bitcoin will reach a value of roughly $25,000 in the near future. In the worst-case situation, you may get $5,000 or $10,000.
“As for Ether, if I’m being optimistic, I expect Ether will reach $1,800 in the near future. Alternatively, it may reach $800 or $1,000 in the worst-case scenario.”
- Daniel Cheung
On Twitter, you may follow cryptocurrency investor and Twitter personality:
“The Fed made us wealthy for a while, but now they are making us impoverished once more.”