Cryptocurrencies were sold out over the weekend, with Bitcoin (CRYPTO: BTC) in particular, it broke below $ 50,000 after trading at $ 68,000 less than a month ago – a 30% drop in less than 30 days.
When trading opens on Monday morning, Bitcoin prices are down 10.5% in the past 24 hours at 9:45 a.m. ET – and it’s not even the cryptocurrency that has been hardest hit. Cardano (CRYPTO: NO) Coins are down 18.2%, and phantom (CRYPTO: FTM) carries the dubious accolade of being the group’s hardest hit crypto – up 31.4% according to data from CryptoCompare.com.
What is the crypto world rocking today? Market analysts (e.g. Time) attributed the sell-off primarily to fears that if the Federal Reserve restricts its bond purchases, it will stop the flow of money that has inflated risky assets like cryptocurrencies and cause prices to fall – – but other factors also play a role.
The chairman of the Securities and Exchange Commission, Gary Gensler, warned investors again last week about “fraud, fraud and abuse … hype and nonsense about crypto assets and crypto projects”, called for more “investor protection” and stated: “Make no mistake : If a lending platform offers securities, it also falls under the jurisdiction of the SEC. “In addition, new plans to tax cryptocurrency transactions were enacted with the signing of a $ 1.2 trillion infrastructure bill.
And of course there is the Omicron variant of the coronavirus, which is on everyone’s lips these days.
This horror parade is rounded off by comments from famous investor Louis Navellier, who recently rejected the tapering trend and warned that “the Fed is tightening and this should cause a correction to risk assets, which include bitcoin.”
Navellier predicted that Bitcoin prices could easily drop as much as 80% (i.e., drop to $ 13,700) from their recent high – or drop even further to $ 10,000. And other cryptocurrencies could fall even harder. As Forbes pointed out over the weekend in a story about Navellier’s doomsday forecast, “smaller cryptocurrencies remain very volatile …
And now we’ve seen them drop by double-digit percentages in a matter of hours. The fact that Navellier’s warning is working as predicted and so soon after its prediction is clearly adding to the uncertainty among investors today.
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