Carnage In The Cryptoverse
Wow — an UGLY day for the cryptocurrency space.
Most likely triggered by the news in recent days of Chinese and South Korean regulators’ plans to enforce much stricter restraints over crypto trading and mining, all of the major coins have experienced painful losses over the course of the day, with many down over 20% in the last 24 hours:
Two hours ago, Bitcoin (BTC) hit an intra-day low of $10,275 — nearly 50% lower than it was four weeks ago.
Ripple, which Peak Prosperity has declared little more than a scam, traded briefly at $0.93 today — a far, far cry from its high of $3.71 just a mere twelve days ago.
Holders of Bitconnect (BCC) just learned today that BCC is shuttering part of its platform, causing folks to wonder if there will be a rationale for continuing to hold the coin. Confused/distraught/angry BCC owners are frantically casting about on the Internet for answers, but so far, few reliable ones are shortcoming.
All of this volatility and panic is little surprise to those of us in the Peak Prosperity community who have been following this space closely of late.
As we wrote about just two weeks ago, the price of virtually every crypto coin was displaying evidence of extreme bubble mania. We warned folks not to jump in at these prices, predicting a serious correction was highly likely to happen in the near future.
At the same time, our resident crypto expert Mark Rees publicly shared that he had been unloading his holdings given how nuts prices had become in such a short period of time.
He’s also on record predicting that 95% or more of the current coins will be gone (i.e., worth $0) in just a few years — Ripple and Bitconnect appear to be vying hard to be among the first to prove him right.
Those who listened to us/Mark now have the opportunity to buy coins at huge discounts today vs just a week or two ago. Of course, the carnage may have a lot further to fall, so we’re not calling a bottom or advising folks to jump in and buy wantonly at this time.
Our main advice to those who think there is long-term merit to the blockchain and related technologies (and we do), is to get educated.
There is certainly continued risk of hitting a capitulation point where the millions of accounts that were opened over the past two months to purchase crypto coins at their all-time high will start selling in desperation, trying to get some value back before their coins experience even further losses.
If we hit that point, prices could easily fall in half again from here…