Posted on 01/22/2022 4:33:39 AM PST by Browns Ultra Fan
For Bitcoin, there’s only been one constant recently: decline after decline after decline. And the superlatives have piled up really quickly.
With the Federal Reserve intending to withdraw stimulus from the market, riskier assets the world over have suffered. Bitcoin, the largest digital asset, lost as much as 8.7% Friday and dropped below $38,000 to its lowest level in six months. Since its peak in November, it has lost 40% of its value. Other digital currencies have suffered just as much, if not more, with Ether and meme coins mired in similar drawdowns.
Bitcoin’s decline since that November high has wiped out more than $570 billion in market value, and roughly $1.17 trillion has been lost from the aggregate crypto market. While there have been much larger percentage drawdowns for both Bitcoin and the aggregate market, this marks the second-largest ever decline in dollar terms for both, according to Bespoke Investment Group.
“It gives an idea of the scale of value destruction that percentage declines can mask,” wrote Bespoke analysts in a note. “Crypto is, of course, vulnerable to these sorts of selloffs given its naturally higher volatility historically, but given how large market caps have gotten, the volatility is worth thinking about both in raw dollar terms as well as in percentage terms.”
Bitcoin plunge wipes out billions in a jiffy
With the Fed’s intentions rocking both cryptocurrencies and stocks, a dominant theme has emerged in the digital-asset space: cryptos have twisted and turned in nearly exactly the same way as equities have.
(Excerpt) Read more at confoundedinterest.net ...
Looks like I avoided another crash in the fake currency market 🤪
“But, but, crypto coins are independent of the market and provide solace when times are tough and people would flee to gold, right?”
“No, Little Timmy.”
Bubbles popping and will no doubt continue to pop.
Foxtrot
Juliet
Bravo
Damn auto-correct should be renamed "auto-misspell ".
I got in early and sold after making a couple grand in profits.
I wouldn’t buy back in for any reason now that governments around the globe are getting involved.
The Ponzi scheme gravy train has derailed.
Back to the age old question for me; is appreciation in an asset bubble actual value when it is lost overnight? I tend to believe no, it was never real value but rather a pump and dump scheme brought to us by very sophisticated bankers & financiers.
Why would anything related to Crypto be part of the DJIA???
Seriously… if there is a crypto company that is included in the DJIA as a stock the the folks running the Dow should all be fired.
It all began when the government quit printing asset backed money and began issuing money backed with a government promise.
Once we went off the gold standard we were screwed.
Crypto Ping List!
I would be satisfied with a commodity index in place of just gold. More comprehensive, and more robust.
I wouldn’t buy back in for any reason now that governments around the globe are getting involved.
The Ponzi scheme gravy train has derailed.
Why would anything related to Crypto be part of the DJIA???
—
Crypto and NFT trading is like tulip mania without even the tulip bulbs. It’s a purified form of speculation. No product, so service, no company, no physical material, no dividend or interest.
The article talks about “market value.” There is no value. It has no value. Neither does the dollar, but it’s the unit of currency and you can exchange it for things of value.
Tulips?
“I almost had to laugh out loud at the idiotic advertisements running during the football playoffs with Matt Damon comparing bitcoin investors speculators to Columbus and the Wright Brothers.”
well, at the least the Manning brothers aren’t pimping meme coins ... yet ...(though i suppose that could be a natural outgrowth of them pimping online gambling)
I have this theory that all forms of investment are ultimately chasing the same dollars, and that may be one reason gold and silver were staying relatively flat. They were competing with crypto for investment dollars.
And I’ve noticed the last week that both gold and silver were doing a fairly steady, solid climb in value
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.