Bitcoin, Ethereum, and Altcoin Crash – What You Need To Know
So essentially overnight Bitcoin lost 40% but at this point is still at this point at nearly $15000 and I believe will recover the $20K mark before the New Year (probably). Some people have asked me what “FUD” is and blame it for the drop which stands for Fear, Uncertainty and Doubt. I’m not buying that. I also want to give a shoutout to Max Kessler who called a lot of things right about Bitcoin and predicted a sharp correction around the $20K mark but insists Bitcoin will keep running much higher.
If you look at the charts for the top 100 cryptocurrencies you will see an almost simultaneous drop in all of them. Now if this just happened in the top 10 or a handful I would believe it is people taking profits randomly (nothing organized or not VERY large sellers).
Could Charlie Lee (creator or Litecoin/LTC) have triggered this? Yes I believe so and I don’t understand his reasoning for selling all of his position. It’s no conflict to own your own coin and try to make it succeed. To many acute investors they would have viewed this like a company about to bankrupt and the executives dump all of their stocks. I certainly don’t think this was Charlie’s intention or concern at all though.
Look at the chart of the top 10 or even top 100 and they look eerily similar. Massive selloffs with similar percentage losses of up to 30%. The only good news or winner here is that Ripple (XRP) hardly lost anything and recovered faster than the others.
So am I worried about crypto or that there is a bubble? Yes and no, I think it has a number of years to run before the risk of a formed bubble bursting happens (and it will be massive bleeding when it does…). But what triggered this current drop of all currencies simultaneously?
My theory is that billions of dollars of hedgefund money has come in, and in the last few weeks the currencies had significant appreciation and like some stock traders, these managers took massive profits which will look very great to the portfolio and their clients.
Now this is where it gets scary because if a small amount of people precipitated this event then it becomes easy for a small group of people to control, manipulate and play the market.
I’m not shaken from what happened, nor do I believe it was the “FUD”, I’m still long on crypto including Bitcoin, from a tech stand point as most things are for me, it’s solid and the next natural step in money. But as always, proceed with caution as we are heading into completely uncharted territories with massive volatility being the norm for now. I will believe more in the FUD as Bitcoin gets higher though because those who have bought in at such high levels have a lot more to risk and worry about.