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A slide in bitcoin (BTC) led to a wider crypto market selloff over the weekend as some traders looked for cues ahead of a busy week to determine positioning.
BTC sunk 4.8% in the past 24 hours trading just above $58,500 in Asian morning hours on Monday, CoinDesk Indices data shows, with the broader crypto market tracked by CoinDesk 20 (CD20), falling 5.2%. Ether (ETH) lost 3.5%….Continue reading….
Source: Bitcoin (BTC) Price Drops to $58,000 Ahead of U.S. CPI Week. What’s Next for BTC?
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Critics:
A cryptocurrency bubble is a phenomenon where the market increasingly considers the going price of cryptocurrency assets to be inflated against their hypothetical value. The history of cryptocurrency has been marked by several speculative bubbles. Some economists and prominent investors have expressed the view that the entire cryptocurrency market constitutes a speculative bubble.
Adherents of this view include Berkshire Hathaway board member Warren Buffett and several laureates of the Nobel Memorial Prize in Economic Sciences, central bankers, and investors. In February 2011, the price of Bitcoin rose to US$1.06, then fell to US$0.67 that April. This spike was encouraged by several Slashdot posts about it. In June 2011, Bitcoin’s price again rose, to US$29.58.
This came after attention from a Gawker article about the dark web market Silk Road. The price then fell to US$2.14 that November. In May 2022, the stablecoin TerraUSD fell to US$0.10. This was supposed to be pegged to the US dollar via a complex algorithmic relationship with its support coin Luna. The loss of the peg resulted in Luna falling to almost zero, down from its high of $119.51. The collapse wiped out $45 billion of market capitalization in a week.
On 25 May, a proposal was approved to reissue a new Luna cryptocurrency and to decouple from and abandon the devalued UST stablecoin. The new Luna coin lost value in the opening days of being listed on exchanges. In the wake of Terra-Luna’s collapse, another algorithmic stablecoin, DEI, lost its peg to the dollar and started to collapse. Kwon Do-hyung, the founder of Terra-Luna, is wanted by South Korea and the US for his role as the creator of the cryptocurrency stablecoin which was guaranteed by an algorithm rather than with appropriate funds, after the loss of 40 billion dollars by investors. He has been arrested in Montenegro.
In November 2013, Bitcoin’s price rose to US$1,127.45. It then gradually declined, bottoming out at US$172.15 in January 2015. The 2018 cryptocurrency crash (also known as the Bitcoin crash and the Great crypto crash) was the sell-off of most cryptocurrencies starting in January 2018. After an unprecedented boom in 2017, the price of Bitcoin fell by about 65% from 6 January to 6 February 2018.
Subsequently, nearly all other cryptocurrencies followed Bitcoin’s crash. By September 2018, cryptocurrencies collapsed 80% from their peak in January 2018, making the 2018 cryptocurrency crash worse than the dot-com bubble’s 78% collapse. By 26 November, Bitcoin also fell by 80% from its peak, having lost almost one-third of its value in the previous week.
A January 2018 article by CBS cautioned about possible fraud, citing the case of BitConnect, a British company which received a cease-and-desist order from the Texas State Securities Board. BitConnect had promised very high monthly returns but had not registered with state securities regulators or given their office address.
In November 2018, the total market capitalization for Bitcoin fell below $100 billion for the first time since October and the price of Bitcoin fell below $4,000, representing an 80 percent decline from its peak the previous January. Bitcoin reached a low of around $3,100 in December 2018. 17 December 2017: Bitcoin’s price briefly reaches a new all-time high of $19,783.06. 22 December 2017: Bitcoin falls below $11,000, a fall of 45% from its peak.
12 January 2018: Amidst rumors that South Korea could be preparing to ban trading in cryptocurrency, the price of Bitcoin depreciates by 12 percent.
26 January 2018: Coincheck, Japan’s largest cryptocurrency OTC market, is hacked. US$530 million of the NEM are stolen by the hacker, causing Coincheck to indefinitely suspend trading. The loss is the largest ever so far by an incident of theft. 7 March 2018: Compromised Binance API keys are used to execute irregular trades.
Late March 2018: Facebook, Google, and Twitter ban advertisements for initial coin offerings (ICO) and token sales.15 November 2018: Bitcoin’s market capitalization falls below $100 billion for the first time since October 2017 and the price of Bitcoin falls to $5,500. Wired noted in 2017 that the bubble in initial coin offerings (ICOs) was about to burst. Some investors bought ICOs in hopes of participating in the financial gains similar to those enjoyed by early Bitcoin or Ethereum speculators.
Binance has been one of the biggest winners in this boom as it surged to become the largest cryptocurrency trading platform by volume. It lists hundreds of digital tokens on its exchange. In June 2018, Ella Zhang of Binance Labs, a division of the cryptocurrency exchange Binance, stated that she was hoping to see the bubble in ICOs collapse. She promised to help “fight scams and shit coins”. 2020–2022 cryptocurrency bubble, 2020–2021 bubbles, From 8 to 12 March 2020, the price of Bitcoin fell by 30 percent from $8,901 to $6,206. By October 2020, Bitcoin was worth approximately $13,200.
In November 2020, Bitcoin again surpassed its previous all-time high of over $19,000. After another surge on 3 January 2021 with $34,792.47, Bitcoin crashed by 17 percent the next day. Bitcoin traded above $40,000 for the first time on 8 January 2021 and reached $50,000 on 16 February 2021. On Wednesday, 20 October 2021, Bitcoin reached a new all-time high of $66,974. In early 2021, Bitcoin’s price witnessed another boom, rising over 700% since March 2020, and reaching above $40,000 for the first time on 7 January.
On 11 January, the UK Financial Conduct Authority warned investors against lending or investments in cryptoassets, that they should be prepared “to lose all their money”. On 16 February, Bitcoin reached $50,000 for the first time. On 13 March, Bitcoin surpassed $61,000 for the first time. Following a smaller correction in February, Bitcoin plunged from its peak above $64,000 on 14 April to below $49,000 on 23 April, representing a 23% mini-crash in less than 10 days, dipping below the March bottom trading range and wiping half a trillion dollars from the combined crypto market cap.
On 14 April, Coinbase, a much hyped crypto exchange, went public on the NASDAQ. Their shares grew by over 31% on their first day to $328.28, pushing their market cap to $85.8B.Other cryptocurrencies’ prices also sharply rose, then followed by losses of value during this period. In May 2021, the value of Dogecoin, originally created as a joke, increased to 20,000% of value in one year. It then dropped 34% over the weekend.
By 19 May, Bitcoin had dropped in value by 30% to $31,000, Ethereum by 40%, and Dogecoin by 45%. Nearly all cryptocurrencies were down by double-digit percentages. Major cryptocurrency exchange Binance went down amid a market-wide price crash and traders are now seeking justice for their losses. This was partly in response to Elon Musk’s announcement that Tesla would suspend payments using the Bitcoin network due to environmental concerns, along with an announcement from the People’s Bank of China reiterating that digital currencies cannot be used for payments.
Bitcoin and other cryptocurrencies experienced a solid recovery after Elon Musk met with leading Bitcoin mining companies to develop more sustainable and efficient Bitcoin mining. After bottoming out on 19 July, by early September Bitcoin had reached $52,633.54 while Ethereum grew by over 100% to $3,952.13. After a short but significant fall, both crypto’s peaked on 7 November 2021 at $67,566.83 and $4,812.09, respectively. The NASDAQ would peak 12 days later on 19 November at 16,057.44. Since bottoming out after the covid crash in 2020, Bitcoin had grown over 1,200% in value while Ethereum had grown over 4,000% in value while the NASDAQ had only grown around 134%.
In September, Bitcoin officially became a legal tender in El Salvador with many news sources wondering what countries would be next. As of October 2021, China has continued shutting down crypto trading and mining activities, and Tesla has not yet resumed payments with Bitcoin. After its peak, the crypto market began to fall with the rest of the market. By the end of 2021, Bitcoin had fallen nearly 30% from its peak down to $47,686.81, and Ethereum had fallen about 23% to $3,769.70.
In December 2022, The Washington Post reported that there was “the sense that the crypto bubble has definitively popped, taking with it billions of dollars of investments made by regular people, pension funds, venture capitalists, and traditional companies”…
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