Business

Investors fear ‘crypto winter’ is coming as bitcoin falls 50% from record highs

Published

2 years ago

January 25, 2022

As cryptocurrency investors reel from the sharp sell-off in bitcoin and other digital currencies, some fear the worst is yet to come.

Bitcoin, the world’s largest virtual currency, briefly plunged below $33,000 Monday to its lowest level since July. It’s since recovered back above the $36,000 mark, but is still down almost 50% from a record high of nearly $69,000 in November.

Meanwhile, the entire crypto market has shed more than $1 trillion in value since bitcoin’s all-time high, as top tokens such as ether and solana followed the No. 1 digital currency to trade sharply lower. Ether has more than halved in value since reaching its peak in November, while solana has suffered an even steeper decline, falling 65%.

That’s got some crypto investors talking about the possibility of a “crypto winter,” a phrase referring to historic bear markets in the young digital currency market’s history. The most recent such occurrence happened in late 2017 and early 2018, when bitcoin crashed as much as 80% from all-time highs.

David Marcus, the former head of crypto at Facebook-parent Meta, appeared to admit a crypto winter has already arrived. In a tweet Monday, he said: “It’s during crypto winters that the best entrepreneurs build the better companies. This is the time again to focus on solving real problems vs. pumping tokens.”

Nadya Ivanova, chief operating officer at the BNP Paribas-affiliated tech research firm L’Atelier, said she’s not convinced a crypto winter has arrived yet — but the market is “now in a cooling off period.” That might not be so bad, she says.

“Over the last year — especially with all the hype in this market — a lot of developers seem to have been distracted by the easy gains from speculation in NFTs and other digital assets. A cooling off period might actually be an opportunity to start building the fundamentals of the market,” Ivanova told CNBC’s “Squawk Box Europe.”

Crypto’s rout has come in tandem with a slide in global stocks. Experts say that involvement from large institutional funds has meant digital assets are becoming more intertwined with traditional markets.

Correction?

Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, thinks the recent slump in crypto is more of a “correction” than a sustained downturn.

Bitcoin has typically seen “blow-off tops” before diving 80% or more, he said. This refers to a chart pattern which shows a steep increase in price and trading volume followed by a sharp fall in price.

“Corrections for BTC usually are in the 30-50% range, which is where we are currently, so still within normal correction territory,” Ayyar said.

Looking ahead, he says a key level to watch for bitcoin is $30,000. If it closes below that point in a week or more, “that would definitely indicate high likelihood of a bear market,” he said. A decline of around 80% from bitcoin’s recent peak would indicate a price of less than $15,000. Ayyar doesn’t think such a scenario is on the table.

Still, investors are worried about the prospect of further regulatory crackdowns on the crypto industry. Last week, Russia’s central bank proposed banning the use and mining of cryptocurrencies, mimicking a similar move from neighboring China. And the U.S. government is reportedly preparing to release a strategy to regulate crypto as early as next month.

MSN/CNBC

Related Topics:bitcoin Crypto Featured highs investors winter

Up Next

NNPC presents N3tn petrol subsidy bill to FEC for 2022

Don't Miss

No Plan To Remove Fuel Subsidy – FG

Business

Naira gains 28.15 against dollar, trades N1,390/$

Published

31 mins ago

May 1, 2024

Trends Admin

Naira gains 28.15 against dollar, trades N1,390/$

The Naira on Tuesday closed the month of April on a good footing as it gained N28.15 at the official market, trading at N1,390.96 to the dollar.

Data from the official trading platform of the FMDQ Exchange, a platform that oversees the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed that the gain represented a 1.98 per cent appreciation for Naira.

Naira gains 28.15 against dollar, trades N1,390/$

(NAN)(www.nannews.ng)

Railway

Finally, Port Harcourt-Aba train service begins with four-day free ride

Published

1 hour ago

May 1, 2024

Trends Admin

Finally, Port Harcourt-Aba train service begins with four-day free ride

A four-day free train ride from Port Harcourt in Rivers State to Aba, Abia State will begin today, May 1, signifying commencement of rail service along the 62-kilometre route.
This is coming a month after the train operation on the rehabilitated narrow gauge track was initially meant to start.
Minister of Transportation, Senator Saidu Alkali, inaugurated the rail service in Port Harcourt on Tuesday.

Alkali said the project was part of the rehabilitation of 1,443km Port Harcourt to Maiduguri narrow gauge rail line.

He said that the Port Harcourt to Aba section of the project was the initial part of the Eastern narrow-gauge railway, aiming to connect five geopolitical zones of the country.

He said, “The Federal Government is pleased to inaugurate the train service from Port Harcourt to Aba, a key priority area of President Bola Tinubu’s administration.
“We are grateful to God for the completion of the Port Harcourt to Aba section, which will bring succour to the people.
“The Eastern narrow gauge covers five geo-political zones of the country, including South-South, South-East, North-Central, North- West, and North-East,” he said.
Aba to Enugu rail is next
Alkali said following the completion of the first segment and the start of commercial operations of the rail service, the Federal Government would soon commence the construction of the Aba to Enugu rail project, linking the two states together.
He added that his ministry was working with investors to ensure the conversion of the locomotive across the country from diesel to Compressed Natural Gas (CNG) to reduce transportation costs further.
“Shortly, we will take a train ride from Port Harcourt to Aba, which means that from today, passenger train service has commenced.
“We will continue the project from Aba to Enugu and from Port Harcourt to both Onne and Port Harcourt seaports for freight services.
“The ministry is currently in discussion with an investor to convert our locomotive from diesel to Compressed Natural Gas (CNG) to reduce transportation costs further,” he said.
The minister assured Nigerians that arrangements were being made with security agencies to ensure adequate security along the rail routes.
He also announced free train rides from Port Harcourt to Aba between May 1 to May 4.
“The train will depart from Port Harcourt to Aba at 8am daily, while it will leave Aba to Port Harcourt at 3pm daily.
“Full commercial operations will resume on May 7, 2024,” he said.

Aviation

Air Peace gets court order to answer queries on aircraft operations

Published

1 day ago

April 30, 2024

Trends Admin

Air Peace gets court order to answer queries on aircraft operations

A Lagos State High Court has ordered Air Peace to respond to questions brought by the Foundation for Investigative Journalism in a libel suit No. LD/ADR/4833/23 filed by the airline on October 12, 2022, regarding its aircraft operations from Lagos to Anambra State.

Air Peace insisted that it followed safety standards and practices in accordance with relevant regulations and policies.

It questioned the FIJ’s interrogations of its aircraft and flight operations, calling them “scandalous and irrelevant” to the libel case.

FIJ was dissatisfied with Air Peace’s responses to the queries and filed an application to compel them to adequately explain the objections.

Justice Kudiarat Jose upheld the argument of FIJ, represented by its counsel, Abimbola Ojenike and Jesulayomi Oyelami of Slingstone LP, stating that the questions requesting the details of the first two aircraft designated to convey passengers were relevant to the facts in issue, related to the defendant’s case, and capable of proving that the defendants were correct.

As a result, the court ordered Air Peace to respond to questions 1, 4, and 7 of the defendant’s interrogation within seven days of receiving the order.

The questions are: ‘Provide a comprehensive description and specification of the aircraft 5N-BUL initially scheduled for the operation of Flight P47336 on October 12, 2022. The description should include the make, year, engine type, and service information, including the most recent aircraft maintenance checks conducted prior to Flight P47336 on October 12, 2022, particularly but not limited to any faults or repairs on the systems.’