Cryptocurrencies are about two weeks long, as experts warn that the embarrassed digital token hasn’t hit near the bottom of the rock.
Cryptocurrencies are about two weeks long, as experts warn that the embarrassed digital token hasn’t hit near the bottom of the rock.
According to Forbes, a spectacular US $ 100 billion (A $ 142 billion) was wiped out of cryptocurrency market capitalization last week.
Well-known blockchains have been hit hard by Bitcoin, Ethereum, BNB, Solana, Cardano, XRP, Dogecoin, Polkadot, Tron and avalanches.
Bitcoin, the top-ranked cryptocurrency, was trading at $ 37,140 per token at the time of writing. That’s an 8% drop in just 24 hours.
Ethereum got worse. The second most popular cryptocurrency fell 20% over the weekend to $ 1946, the lowest level since March 2021.
Cryptocurrencies are not strangers to fluctuating price points, and their volatility has often led to encouraging other traders to buy while they are of low value.
However, one expert warns that this strategy will not work.
“Buying a dip” is not a good idea, said Peter Schiff, chief economist at EuroPacific Capital.
On Sunday, Schiff warned in a tweet: “This could be a tough weekend for cryptocurrencies.
“Bitcoin seems ready to crash to $ 20,000 (USD) and Ethereum to $ 1000.
“If so, the market capitalization of nearly 20,000 digital tokens will fall below $ 800 billion from a peak of nearly $ 3 trillion. Don’t buy this dip. You’ll lose more money prize.”
Another cryptocurrency pro, Benjamin Cowen, warned that many altcoins would not survive the current bear market.
“The ruthless truth is that many alts (but not all) will never hit record highs again,” he wrote on social media to 650,000 followers.
Cryptocurrencies have faced calculations in recent weeks, especially in the last few days, amid concerns about a global recession amid sharp inflation and rate hikes at the US central bank.
Inflation in the United States rose to 8.6% in May, the worst level since 1981, according to Friday’s data.
This Wednesday, the Federal Reserve Board is expected to raise interest rates to combat rising inflation.
Economists predict that interest rates will settle to 0.25% or 1.50% in July, and the central bank did the same last month.
Creepy investors have withdrawn from cryptocurrencies and also from the wider stock market.
The Ethereum priced freefall, originally published as Bitcoin, will be disastrous: “Don’t buy this dip”
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