If you’re holding any crypto, by now I’m sure you’ve heard that pretty much all coins and tokens are in the toilet and still sinking.
As you can imagine, there are tons of newbs out there who are in full-on panic mode, dumping their crypto and sustaining varying degrees of losses. Don’t believe me? Check crypto Twitter for the panicked tweets.
It was 3 weeks ago today that I first wrote about the panic around the market tanking.
Now, admittedly, it wasn’t as big a drop as we’re seeing right now.
Current State of Affairs
As of this writing, coinmarketcap.com has the total cryptocurrency market cap at $553,012,314,152 USD, down over 20%.
Bitcoin (BTC) itself is down 18.87%, Ethereum (ETH) down even more, seeing a 20.24% drop, and Litecoin (LTC) nearly matching Ethereum with a 20.13% drop.
The less popular alts are taking an even bigger beating, with the worst of the lot being MediBloc (MED) seeing a 41.89% loss, Siacoin (SC) at 38.35, and Dent (DENT) at 36.95.
Other popular alts didn’t fair too much better, with Ripple (XRP) taking a 31.55% hit, Bitcoin Cash (BTH) seeing a 24.55% loss, Cardano (ADA) falling by 28.25%, and Stellar (XLM/STR) losing 31.80%.
What’s the Cause?
There are a number of thoughts floating around about why this is happening. My guess is that it’s a combination of the lot.
Lunar New Year
This all took place before my time in the crypto world (I am a newbie, after all), but it seems that there is a history of dips around the Lunar New Year.
Given the travel and gift giving that takes place around Lunar New Year, coupled with the fact that the Chinese both celebrate Lunar New Year and are heavy crypto investors, it seems reasonable that there might be somewhat of a “cash-out” to cover seasonal expenses.
China and South Korean Regulators
Speaking of China, Bloomberg recently reported that regulators are cracking down even more on both domestic and offshore cryptocurrency exchange platforms.
There’s also the uncertainty around what South Korea is planning on doing. Last week there were reports that the government would be making moves to shut down cryptocurrency exchanges, but that was later walked back. Sort of. At this point, it’s not clear what’s going to happen.
In my view, governments may very well make moves in this direction (see: China), the very nature of cryptocurrencies make this difficult, if not impossible, to enforce.
Isn’t that the whole point of decentralisation? That it can’t be controlled by a single entity?
So, What’s Going to Happen?
The sky was falling on December 26, the sky is falling now, and the sky will, in all likelihood, fall again.
Heck, just look at some of the ups and downs Bitcoin has seen through 2017 alone!
So, unless one thinks that this is the bubble finally bursting, my thinking is sit back, HODL, and wait for the markets to recover.
Of course, I’m a newbie and have no idea what I’m talking about. So, take that into consideration.
What are your thoughts on the cause?
What is your plan for dealing with it?
Let us know in the comments!
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