{"id":1473760,"date":"2022-05-13T07:30:43","date_gmt":"2022-05-13T11:30:43","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1473760"},"modified":"2022-05-13T07:32:01","modified_gmt":"2022-05-13T11:32:01","slug":"crypto-investors-panic-as-market-drops-stoking-fears-that-the-bubble-is-about-to-burst","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/crypto-investors-panic-as-market-drops-stoking-fears-that-the-bubble-is-about-to-burst\/","title":{"rendered":"Crypto Investors Panic as Market Drops, Stoking Fears That the Bubble is About to Burst"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcrypto-investors-panic-as-market-drops-stoking-fears-that-the-bubble-is-about-to-burst%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1473760&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Crypto investors panicked on Thursday as bitcoin plummeted to its lowest price in more than a year and other cryptocurrencies endured even worse sell-offs.\u00a0<\/p>\n<p>Victims of the bloodbath \u2014 which comes amid a broader stock market rout \u2014 range from the <a href=\"https:\/\/nypost.com\/2022\/05\/12\/crypto-billionaires-losing-fortunes-as-bitcoin-tumbles\/\">billionaire crypto titans<\/a> who run leading marketplaces such as Coinbase and Binance to lowly retail investors who have poured their life savings into cryptocurrencies.  <\/p>\n<p>\u201cI lost over 450k usd, I cannot pay the bank,\u201d reads one of the top posts on the Reddit forum for Terra Luna, a cryptocurrency that has lost more than 99% of its value over the past week. \u201cI will lose my home soon. I\u2019ll become homeless. suicide is the only way out for me.\u201d\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/ethereum-73.jpg\"><\/a><figcaption>\u201cI will lose my home soon. I\u2019ll become homeless. suicide is the only way out for me,\u201d read one post concerning the market bloodbath.<\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cMy ex-colleague attempted suicide,\u201d reads another top post on the forum. \u201cHe basically moved all of his savings to crypto in 2021 and LUNA was a massive player in his portfolio.\u201d\u00a0<\/p>\n<p>While Luna\u2019s collapse is the most spectacular, other cryptocurrencies are also in freefall. Bitcoin was trading around $28,300 Thursday afternoon, down 20% over the past week and nearly 60% lower than its all-time high of $69,000 in November 2021. Other major cryptocurrencies including ethereum and solana are now worth fractions of their all-time highs. <\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/bitcoin_13.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/05\/bitcoin_13.jpg\" alt=\"\" In crypto \/><\/a><figcaption>\u201cIn crypto, the strong survive and the weak get flushed,\u201d said Garrick Hileman, research chief at Blockchain.com.<\/figcaption><figcaption><span class=\"credit\">NurPhoto via Getty Images<\/span><\/figcaption><\/figure>\n<p>The entire cryptocurrency market now has a market capitalization of $1.2 trillion \u2014 less than half of the $2.9 trillion it was worth in November, according to CoinMarketCap <a href=\"https:\/\/coinmarketcap.com\/charts\/\">data<\/a>. <\/p>\n<p>\u201cThere\u2019s a lot of folks out there who have taken some real bruises.\u201d said Garrick Hileman, research chief at Blockchain.com. \u201cIn crypto, the strong tokens survive and the weak get flushed.\u201d<\/p>\n<p>In the past, drops in crypto have been touted online as a buying opportunity, which have juiced prices back up. Now with the threat of recession looming, it\u2019s unclear if investors will \u201cbuy the dip.\u201d<\/p>\n<p>The ongoing rout gives fuel to detractors who have long argued that the decentralized digital currencies were a frothy fad fueled by low interest rates and pandemic-era stimulus checks. <\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Charlie-Munger-46.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/05\/Charlie-Munger-46.jpg\" alt=\"Charlie Munger\" class=\"wp-image-22243757\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Charlie-Munger-46.jpg?quality=75&#038;strip=all&#038;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Charlie-Munger-46.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Charlie-Munger-46.jpg?quality=75&#038;strip=all&#038;w=512 512w\" \/><\/a><figcaption>Berkshire Hathaway\u2019s Charlie Munger called cryptocurrencies a \u201cvenereal disease.\u201d <\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>Prominent crypto critics include JPMorgan Chase boss Jamie Dimon, who <a href=\"https:\/\/nypost.com\/2021\/10\/11\/jpmorgan-chief-jamie-dimon-says-bitcoin-is-worthless\/\">once said bitcoin is \u201cworthless\u201d<\/a> \u2014 as well as billionaire Berkshire Hathaway executives Warren Buffett and Charlie Munger. <\/p>\n<p>The 98-year-old Munger recently referred to cryptocurrencies <a href=\"https:\/\/nypost.com\/2022\/02\/17\/berkshire-hathaways-munger-crypto-like-a-venereal-disease\/\">as a \u201cvenereal disease\u201d<\/a> that he was \u201cproud\u201d to have avoided. Berkshire Hathaway shares are up 5.6% over the past six months, while bitcoin is down 56%. <\/p>\n<p>The crypto crash comes as the Federal Reserve hikes interest rates in an effort to cool inflation, sending high-risk tech stocks into a tailspin. The tech-heavy Nasdaq composite index is down 30% so far this year\u00a0and has been heavily correlated with the price of bitcoin in recent weeks, according to Refinitiv data.<\/p>\n<aside class=\"single__inline-module alignright\">\n\t<\/aside>\n<p>\u201cWe see more overlap in ownership than we ever have, this kind of convergence between Wall Street and crypto,\u201d said Hileman, who\u2019s also a visiting fellow at the London School of Economics. <\/p>\n<p>Investors who poured their money into buzzy tech stocks have taken a beating alongside crypto fanatics. <\/p>\n<p>\u201cNeed help: LOST EVERYTHING in the stock market,\u201d reads a popular post on the corporate message board Blind. \u201cI invested every last dollar I saved in the stock market and I\u2019m currently down almost 85%.\u201d <\/p>\n<p>The self-identified 29-year-old Home Depot corporate employee said he mostly owned shares of tech firms including Meta, Peloton and Spotify.<\/p>\n<p>\u201cThey have all s\u2013t the bed,\u201d the employee raged. \u201cSame thing with crypto.\u201d <\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/bitcoin_12-1.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/05\/bitcoin_12-1.jpg\" alt=\"Bitcoin\" class=\"wp-image-22243828\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/bitcoin_12-1.jpg?quality=75&#038;strip=all&#038;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/bitcoin_12-1.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/bitcoin_12-1.jpg?quality=75&#038;strip=all&#038;w=512 512w\" \/><\/a><figcaption>Bitcoin\u2019s performance is increasingly correlated with tech stocks. <\/figcaption><figcaption><span class=\"credit\">NurPhoto via Getty Images<\/span><\/figcaption><\/figure>\n<p>The fall in cryptocurrencies could also curb spending, and even national GDPs. The value of \u201cnon fungible tokens,\u201d digital artwork called NFTs, increased along with cryptocurrency and will likely suffer with it. Meanwhile, Nayib Bukele, the new president of El Salvador, has tried to make that country reliant on crypto \u2014 its holdings are now down 28% and threaten the entire economy.<\/p>\n<p>Bitcoin\u2019s plunge is likely to scare off some of the retail investors who poured money into crypto during its stimulus-fueled surge, while potentially enticing those hoping to buy the dip, according to Chris Kline of Bitcoin IRA. <\/p>\n<p>\u201cIt takes away the tourists from the true believers,\u201d said Kline, who\u2019s the COO and co-founder of the crypto retirement investment site with 100,000 users. \u201cThere will be folks that say, you know what, crypto\u2019s just not for me. But there will probably be just as many new folks coming into the market.\u201d<\/p>\n<p>Shares of Coinbase, the only major publicly traded cryptocurrency exchange, have fallen 84% since the company went public in April 2021. The company warned customers on Wednesday that their <a href=\"https:\/\/nypost.com\/2022\/05\/11\/coinbase-warns-customers-they-may-lose-crypto-if-company-goes-bankrupt\/\">cryptocurrency holdings could be at risk<\/a> if Coinbase goes bankrupt, although CEO Brian Armstrong insisted that bankruptcy isn\u2019t in the cards. <\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Brian-Armstrong-94.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/05\/Brian-Armstrong-94.jpg\" alt=\"Coinbase\" class=\"wp-image-22243863\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Brian-Armstrong-94.jpg?quality=75&#038;strip=all&#038;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Brian-Armstrong-94.jpg?quality=75&#038;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/05\/Brian-Armstrong-94.jpg?quality=75&#038;strip=all&#038;w=512 512w\" \/><\/a><figcaption>Coinbase CEO Brian Armstrong insists his company won\u2019t go bankrupt \u2014 but his company warned customers that their cryptocurrency holdings could be at risk. <\/figcaption><figcaption><span class=\"credit\">Getty Images for Vanity Fair<\/span><\/figcaption><\/figure>\n<p>While Hileman is optimistic about cryptocurrencies\u2019 long-term prospects, he said the current downturn shows amateur investors need to be careful.<\/p>\n<p>\u201cI feel for anyone who has been badly beaten up by what\u2019s happening,\u201d he said. \u201cYou shouldn\u2019t put more into this than you can afford to lose.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto investors panicked on Thursday as bitcoin plummeted to its lowest price in more than a year and other cryptocurrencies endured even worse sell-offs.\u00a0 Victims of the bloodbath \u2014 which<\/p>\n","protected":false},"author":489,"featured_media":1482815,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1473760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1473760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/489"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1473760"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1473760\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1482815"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1473760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1473760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1473760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}