Putting Bitcoin’s Price Correction in Perspective

Siamak Masnavi

Today, with Bitcoin down almost 15% in the past 24-hour period and currently hovering around the $4,500 level, anyone who bought bitcoin at its all-time high in December 2017, has sadly lost, on paper, 75% of the money they put in. So, it seemed like the right time to try to gain some perspective on this huge price correction from the advice offered by some of the most prominent players in the crypto space.

Mati Greenspan, Senior Market Analyst at eToro

Earlier today, Greenspan sent out this tweet:

However, for a more detailed explanation, we need to refer to the "Daily Market Update" he emailed to eToro clients earlier today:

"The year 2017 was an exceptional year for high risk assets, including cryptos and tech stocks. In 2018, we're seeing is a retracement of that. When prices reach levels that are higher than can be justified, they need to pull back and so the cycles continue. It's important to note that over this time the Nasdaq is still up 30% and Bitcoin, well... you can see the percentage in blue on the above chart. It isn't possible to time the markets to a T, so every person needs to take the decision if they're an investor or a trader. If you're trying to catch each and every small move, it can prove to be difficult, especially in times of uncertainty such as these. For long-term investors, results are usually much more predictable."

Anthony Pompliano, Founder & Partner at Morgan Creek Digital

In today's edition of his highly popular daily newsletter for institutional investors, "Off The Chain," Pompliano (AKA "Pomp" on Twitter) started by saying to his readers that they continue to reiteate to clients that Bitcoin is acting as they expected:

"On August 24 of this year, with Bitcoin around $6,500, I wrote 'we are likely to see Bitcoin near $3,000 before we see Bitcoin at $10,000 again. If this is true, that means we still have ~50% price decrease to go. Things may get really, really ugly if this happens.'"

He finished today' post with the following words:

"We are seeing the beginnings of blood in the streets, but there is more to come. When it happens, we will be presented with one of the most attractive risk/reward opportunities in a long time. Those that control their emotions and have the courage to act, while others are capitulating, will be rewarded handsomely. Keep breathing. Everything will be okay."

Chris King, Analyst at Morgan Creek Digital

Ben DiFrancesco, Founder and CEO of ScopeLift

Ran Neu-Ner, Host of CNBC's "Crypto Trader"

Jake Chervinsky, Lawyer at International Law Firm Kobre & Kim

 

Featured Image Credit: Photo via Pexels.com

Argentina’s Smallest Currency Denomination Now Worth Only One Satoshi

Michael LaVere
  • Argentina's smallest currency denomination, the centavo, is now worth one satoshi.
  • The country is in the midst of a currency crisis, with the inflation rate reaching 50 percent. 

Argentina’s smallest unit of currency has slumped in value to now be worth the equivalent of one satoshi. 

The Centavo, which has been in circulation since 1854, has joined the Lebanese Lira and Vietnamese Dong in being the same value as the smallest denomination for bitcoin. 

The currency’s fall in value was noted by Argentinian Reddit user u/OneMoreJuan, who used the Centavo’s plight as an example to invest in bitcoin. Another user in the comments claimed that scrap material for the Centavo was now worth more than the coin itself.

Argentina is one of several South American countries to undergo hyperinflation and currency crisis in recent years, with the government defaulting on its loans a record nine times. The country entered its third year of recession prior to the start of the coronavirus pandemic, after undergoing an economic crisis that first began in 2018. 

According to a report by Bloomberg, Argentina’s inflation has outpaced expectations, with the current rate reaching roughly 50 percent. 

Argentinians have responded to the devalued fiat by turning to bitcoin and crypto-assets in droves. Data aggregator Coindance shows a significant spike in weekly LocalBitcoins volume for Argentinian customers since the start of the year, reaching as high as $70 million in May.

Featured Image Credit: Photo via Pixabay.com