Bitcoin’s unrelenting selloff puts prices on verge of $20k as market shows

[Derrick.Arnold]

Bitcoin’s unrelenting selloff puts prices on verge of $20,000 as market shows signs of panic

There’s a growing sense of anxiety about the stability of crypto projects large and small. Tron founder Justin Sun’s roughly month-old stablecoin USDD drifted from its intended dollar peg, at one point dipping below 96 cents, data from CoinGecko show. A tweet from the co-founder of crypto hedge fund Three Arrows Capital fuelled speculation that it had suffered large losses.

Bitcoin fell as much as 8.6 per cent on Wednesday to US$20,081.95. The largest token has fallen for nine straight days, the longest losing streak since 2014. Ether was on the cusp of breaking the US$1,000 mark after a 10 per cent plunge.

A market that started sliding late last year on expectations of tighter monetary policy is now showing signs of widespread panic, after last month’s collapse of the Terra blockchain and the recent decision by crypto lender Celsius Network Ltd. to halt withdrawals. Even long-term holders who have avoided selling until now are coming under pressure.
Adding to the market’s nerves, the founder of Three Arrows Capital, an influential hedge fund that has been liquidating crypto holdings, posted a vague tweet. “We are in the process of communicating with relevant parties and fully committed to working this out,” former Credit Suisse Group AG trader Zhu Su tweeted from his verified account, without providing further details.
The crypto market now stands at a fraction of its heights in late 2021, when Bitcoin traded at a heady US$65,000 and traders poured cash into speculative investments of all stripes. The total market cap of cryptocurrencies is US$925 billion, down from US$3 trillion in November, according to CoinGecko.

With prices continuing to dive, there are more predictions that losses will accelerate if key levels are broken.

If these levels break, US$20,000 Bitcoin and US$1,000 Ether, we can expect massive sell pressure in the spot markets as dealers hedge themselves.https://financialpost.com/fp-finance/cryptocurrency/bitcoin-unrelenting-selloff-puts-prices-verge-20000-market-signs-panic

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[franky1]

expect etherewum to have a long term drop as it changes to PoS.
the costs of signing blocks vs pow mining blocks will make ethereum value drop by 2000x from its ATH meaning it going down to just a few dollars.

as for bitcoin.
though markets try to short the btc price. there are many countries that cant afford to mine and so they would prefer to buy and so that will counter those hard pushes of shorters.

its like everything if a banana was 10cents in 2020 and went upto 70cents in 2021 and then down to 17cents in 2022
where by its now 20cents and not many farmsers can grow bananas for 10-17cents anymore.. then people will realise that the new value of banana is ~17-20 as being the cheap price. and be buying more bananas now before the winter season when prices go premium again.

bitcoin will remain a deflationary currency where by the costs will go up.
take any bitcoin discount period as that a discount and a great time to get in

treat ethereums prices as a slow step down which will continue to step down over time as the PoS detonation looms

[DaveF]

...
treat ethereums prices as a slow step down which will continue to step down over time as the PoS detonation looms

Starting with that, I think ETH is going to do a really nice bounce, possibly to a new ATH, when it goes PoS as many many people will want to get in on the new magical internet money thing.

As for BTC, we keep seeing these posts as people who have no BTC hope / want it to go lower so they can get in. Price for while now seems stable at $20k +/- !0% and I think there are a lot of people making a lot of money on trading in that sphere keeping it in that range. With no MAJOR news either good or bad there really is no reason for it to move from that range other then pure speculation for the time being. Which is good, since people like stable. Yes they like massive price increases more so they can make money but for now stable seems to be working.

-Dave

[franky1]

...
treat ethereums prices as a slow step down which will continue to step down over time as the PoS detonation looms

Starting with that, I think ETH is going to do a really nice bounce, possibly to a new ATH, when it goes PoS as many many people will want to get in on the new magical internet money thing.

do the maths.. its the opposite

what you will find is that people with just 1-2 eth.. (under32eth threshold) cant solo stake.
they will pool stake by depositing their little coin into an exchange
where by the exchange (one PC) regularly signs a block at penny costs for their PC due to having alot of collective stake to have lot of oppertunities.

and so then dividing that coin over a few million customers to give them small decimals of 'passive income'
which costs the users NOTHING.
 where by it cost exchanges pennies and costs its customers nothing. everyone would be willing to sell very very cheaply and still profit

ethereum while its PoW has a underlying cost of atleast $500 per eth right now. so yea the speculative amount above it is why its at $1k right now and speculated to a high of $4k
(2x-8x speculation above value cost)

but when it begins to cost only a few pennies and a few dollars. the speculation would only be 2x-8x of the underlying cost. meaning still pennies/dollars

you wont see ethereum at a $8k bubble speculative price with an underlying value cost of under a few dollars. that would be a hyper bubble.

[Doan9269]

expect etherewum to have a long term drop as it changes to PoS.
the costs of signing blocks vs pow mining blocks will make ethereum value drop by 2000x from its ATH meaning it going down to just a few dollars.

as for bitcoin.
though markets try to short the btc price. there are many countries that cant afford to mine and so they would prefer to buy and so that will counter those hard pushes of shorters.

We can confidently say of bitcoin to withstand the current status on price within a little period but Ethereum is an altcoin and we can't vouch for it, who knows maybe the change from PoW to PoS will be the revelation to it real identity from what it claimed to have been, that's why we assume many of the altcoins as shitcoins, i think something new may be fishy about Ethereum or about other cryptocurrencies along this season of dip in bitcoin price which has eventually affected all other cryptocurrencies as well.

[dataispower]

The instability of cryptocurrency is what makes some people to behave differently when there is bearish. Some investors to sell their Bitcoin because there are not extremely sure about increment of Bitcoin in next two months and next three months so whoever that is not strong cryptocurrency will likely to lose courage. I have sent it that why people panic to sell off their currencies because of I don't actually know the result and turn of cryptocurrency this time. For my own understanding Bitcoin get it hard total positive for this bearish market Ethereum already showing changes of getting positive

[DeathAngel]

Anything under $20,000 is a gift, as long as you don’t have a short time preference in your investing then bitcoin is the best investment there is. Nothing else matches bitcoin, keep buying & stop worrying about short term price movements.

[buwaytress]

I kind of like franky1's use of banana to explain and in this current climate where inflation is really coming in thick and fast, it makes a lot of sense. Definitely remember when TP and handwash were priced well above what was supposed to be "true value". I hate to think of it in the Bitcoin sense but I guess all that demand -- buying Bitcoin now because it's still cheaper than making it yourself -- means we're actually at a slightly higher-than-true-value price (in current climate).

Nevertheless, also as DaveF notes, there's a lot of people highly suited to this kind of sideways trading. Think there was a record short yesterday prior to the price slip but bettors made their quick 5% gains and then price went right back up.

It's not so much an unrelenting selloff as a standstill between desire to keep profiting from tight ranges, and unwilling demand.

[jackg]

We already crossed $20k too before so it's not really that unexpected if we do it again.

If you invested in crypto to get a positive return in a week, you were very misinformed (even a field takes 6 months to 2 years to produce a crop) - most markets are doing poorly too (like stocks).

[Fivestar4everMVP]

Bitcoin's price have gone under $20,000 about 3 or 4 times now and later manages to break above it again and again, so right now, if price goes under $20,000 again, i personally do not see that as a panic or some sort, Bitcoin is just doing that which make it Bitcoin, this is not the first bear market hitting Bitcoin, there have been several others in the past where price of Bitcoin went extremely low after hitting a very high price, so people should stop making this current downtrend look like its the very first of its kind.

[barbara44]

The logic of buying right now being a bit over the value of making it, shows that we are buying it cheap right now. This is definitely something we should be quite proud about. I am not saying that it is "guaranteed" to make us money, but it isn't a bad situation neither.

This results with some sort of a problem where people see that it could make them a profit, but they are not sure about it at all and that’s why they hesitate to get in. I say, get in no matter what and if you are wrong then you are wrong and it's fine, why would you be worried about being wrong when all we are not sure about right now is the date of it, either you get richer in a week or in a year, but you will.

[TravelMug]

Isn't it we already have a big selling pressures since December of 2021? And then we officially enter the bear market this year? So what more pressures can we endure? others argued that we may have reach the bottom already at $17.5 but there are some who thinks that we can still go lower than that. So yeah, bitcoin is still very cheap and at a discounted price, and due to what is going on right now, i.e. the war, recession, inflation, it will really take a toll on all market. But I think BTC has a high chance of recovery in the next coming years maybe getting into the $100k range.

[Poker Player]

I believe that the $20k is acting as support, even though we went down to $17k and change. This price is cheap and below $20k even cheaper, so it looks like the price won't last long below $20k if we go back down.

We have had the Celsius bankruptcy filing recently and it doesn't seem to have affected the price much. I think subsequent bankruptcies that might come won't affect it much either. There would have to be catastrophic news of some other kind for us to go down to $15k or beyond.

[hugeblack]

Almost the market knows how to deal with the problems of stablecoins, so if the USDD collapses, there will be no effect as it happened with Luna, perhaps the only difference is if USDT AND BUSD  de-pegged.
Prices are still steadfast at levels above 20k, but staying for a long time below 200 MAV level means that we may witness violent changes, either reaching 30k or a return to 14k.

Starting with that, I think ETH is going to do a really nice bounce, possibly to a new ATH, when it goes PoS as many many people will want to get in on the new magical internet money thing.

I am also inclined to @franky1 opinion, Ethereum will witness a short-term rise when it turns to prove stake and then it will be the beginning of the end, so I do not expect this transformation to happen quickly.

[coinsrider]

Man, the conversations are stressing me out I really don't intent to sell off just because the prices are falling, I am aware of the fact how the industry work. Buy is the call for the optimistic crypto enthusiast but also the market panic is huge.

[franky1]

Starting with that, I think ETH is going to do a really nice bounce, possibly to a new ATH, when it goes PoS as many many people will want to get in on the new magical internet money thing.

I am also inclined to @franky1 opinion, Ethereum will witness a short-term rise when it turns to prove stake and then it will be the beginning of the end, so I do not expect this transformation to happen quickly.

people can already start staking eth.
the forks already exist. they just have not merged/'detonated' (where the PoW version ends).
so dont expect some massive spike of buys after the merge. instead expect the merge/stake to already get 'priced in' now and until merge

also before the merge, the PoW is going to get increasingly difficult. and yes new eth ASICs are just released meaning PoW eth will get more expensive.

this is not a situation of expecting a 10x 100x ATH due to it. but instead the GPU miners to just drop out and leave a smaller pool of miners over all where those miners are just a few lingering ASIC miners trying to snag some PoW fork coin before it merges.

so again expect the eth price to have already 'priced' in any changes before the merge happens. and then expect the after merge/'detonation' to then go straight to PoS cost/value vs speculation game

as for bitcoin
there are new gen asics releasing this year. the 140thash-300thash units. and there are many large farms buying in bulk. so expect hashtrates to go up, difficulty to go up and thus costs to go up. where by those with the most efficient set up wont sell as cheap. those with more expensive set ups that cant mine profitably would rather put money into just buying coin while cheap. and thus uplift the price.

Eth is heading in a downward cost/speculative direction over the next year
btc is heading in an upward cost/speculative direction over the next year

this is not financial advice. its just simply looking at obvious details of the mining situation and its impact on peoples price points