Sunday, November 27, 2022

Hold My Beer: Bitcoin Crashes Below $10K in Another ‘Red Day’ for Cryptos

Hold My Beer: Bitcoin Crashes Below $10K in Another ‘Red Day’ for Cryptos

Bitcoin fell through the important $10,000 USD psychological floor today, dropping back into four-figure price territory and hitting its lowest point since the end of November 2017. It wasn’t alone on the battlefield though, with all but a handful of CoinMarketCap’s top 100 digital assets taking double-figure percentage hits. 
Also read: NIST Has Already Amended Its Controversial Bitcoin Cash Fork Description

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At press time, Bitcoin was $9,807 USD on Coinbase — the lowest point in 2018. It previously dipped to $9,833 there on January 18th, but rebounded somewhat. However BTC never reached its December-January peaks of $19,205 and $16,597 respectively.

If you’d prefer optimism, check out Bitsonline’s technical analyst Ramiro Burgos, who arguably understands charts far more than this writer — and yesterday said BTC still had potential to reach $30,000… maybe. Otherwise, read on.

Rekt if You Weren’t Here Before December

One sobering thought is that anyone who bought into bitcoin at those peak points may have lost half their investment, or more. Bitcoin may still be running at a profit for anyone who bought coins before November 28th 2017, but the massive drop has certainly taken some of its glow.

Seasoned investors may now be thinking if BTC (and the entire cryptocurrency spectrum) might be seeing a repeat of 2014 — although in percentage terms, 2018 is already much worse than that.

It’s a bit unfair to single out Bitcoin as the big loser in news headlines — a glance at the charts suggest investors are trading their cryptos for fiat and other assets, not each other.

CoinMarketCap Chart
chart via

As you can see, crowd-pleasers NEO, EOS and Cardano brought their holders the biggest losses in the top ten, though other well-knowns like Stratis, Steem and Verge took over 20 percent hits.

OK, Who Do We Blame This Time?

The drops could be due to any number of events. It hasn’t been a great week for confidence-inspiring crypto news, with a $500 million USD NEM/XEM hack at Japanese exchange Coincheck, emerging news of a subpoena looking to examine popular exchange Bitfinex and its partner Tether, and smatterings of other news about regulatory tightening in Asia.

It’s a bit of a stretch to beat crypto’s favorite scapegoat, the Chinese government, this time. It’s possible cryptos’ losses today are partly self-inflicted.

General chatter in online trader groups like Whalepool and Whaleclub was mainly about Tether — which should mainly affect Bitcoin but could have a knock-on effect that weakens confidence in all cryptos. Traders inexperienced in the ways of digital assets might also see it as a sign to pull out for a while.

Will the “real” money come back to crypto? Or is the market consolidating around tokens with actual utility? Tell us what you think in the comments.

Images via YouTube, CoinMarketCap

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