Bitcoin, Ethereum and Dogecoin enthusiasts saw a little digital destruction the past couple of days.
Most cryptocurrency investors, while probably not enjoying the recent ride, are not too surprised at the continuing fluctuations – and many appear to have seen value at the lower prices.
Bitcoin dropped under $30,000 for the first time since January, with analysts pointing to China’s recent increase in crypto restrictions, but after hitting $28,993 Tuesday morning it rallied and sat north of $32,000 by midday.
At the lowest level, all the gains made in 2021 had officially been eliminated. The year-over-year picture, though, remained strong – bitcoin was at roughly $10,000 one year ago.
Coindesk reported the drop in bitcoin at more than 8 percent; Ether, the second-largest cryptocurrency, fell 10 percent to $1,768; and Dogecoin prices plummeted approximately 25 percent, landing at $0.17.
Other cryptocurrencies including XRP and Litecoin were down more than 10 percent.
The Peoples Bank of China helped to trigger the downturn in cryptocurrencies, saying it gathered China’s largest banks and payment firms, according livemint.com, and was pushing the financial specialists to further clamp down on crypto trading.
“Crypto exchanges were effectively pushed out of China by a 2017 rule change, but over the counter (OTC) platforms based-overseas sprung up to act as middlemen, receiving payment from people based in China and buying cryptocurrencies on their behalf.”
As for the coming months, opinion on cryptos is scattered.
From an Independent story on Yahoo! Finance, the dreaded death cross could be in play:
“The latest drop has led to fears that more losses could be on the way, as a pattern known as the ‘death cross’ has been reached. This is where the 50-day moving price average falls below the 200-day moving average, potentially signalling the arrival of a bear market.”