The crypto market has entered a period of “extreme fear”, according to one metric, after the price of bitcoin and several other leading cryptocurrencies suffered a severe crash at the end of last week.
Bitcoin plummeted by more than $10,000 on Friday, briefly falling as low as $45,000 before staging a slight recovery over the weekend.
It has risen above $47,000 on Monday morning but remains a long way off the all-time high it experienced last month of close to $69,000.
Ethereum (ETH), Binance Coin (BNB), Solana (SOL) and Cardano (ADA) also saw heavy losses at the end of last week but appear to have steadied somewhat at the start of the week.
The cryptocurrency downturn has dented any hopes of new records before the end of 2021, though some analysts believe the “extreme fear” signal could be an impetus for some investors to buy back in while prices are relatively low.
We’ll have all the latest news, analysis and expert price predictions right here.
Happy birthday Dogecoin!
Today marks the eighth birthday of dogecoin, the original meme cryptocurrency.
Co-creator Billy Markus, who counts Elon Musk and Jack Dorsey among his Twitter followers, celebrated in typical style with a gif of a Shiba Inu dog wearing a party hat.
This year was the first time since Markus reinvested in the cryptocurrency, having spent his original holdings not long after the cryptocurrency was created in 2013.
Myself and video producer Charlie Craven made this short video earlier this year, just as its price was once again taking off, to explain what all the fuss is about.
PlanB still bullish on bitcoin price
One of the few things to keep pace with the crypto market’s growth over the last 12 months has been the follower count of PlanB, the pseudonymous Dutch analyst whose Stock-to-Flow (S2F) price prediction model for bitcoin has been hailed for its accuracy.
PlanB’s Twitter following has risen from tens of thousands to more than 1.6 million since this time last year, as cryptocurrency investors and watchers seek to garner insights into the market from his posts.
The S2F model he is most famous for puts BTC on a path to reach above $100,000 this cycle, though the latest crash has left some doubts over whether it can be reached. After a brief hiatus, he is back to assure his followers that he still has faith in bitcoin returning to new all-time highs.
“Bitcoin realised cap still increasing after March $58.8K close .. you can not keep the ball under water forever,” he tweeted today.
Crypto ‘bank heist’ sees BitMart exchange lose $196m
The CEO of BitMart has confirmed the cryptocurrency exchange has suffered a “large-scale security breach”, resulting in the loss of an estimated $196 million.
Sheldon Xia said any users impacted by the hack will be compensated, and that deposits and withdrawals will resume at some point tomorrow.
One security expert told The Independent that it is “a modern version of a bank heist with arguably less risk and less effort”, and warned hackers may be encouraged by its success.
You can read the full story here.
‘This is a modern version of a bank heist,’ one security expert says
Crypto market in ‘extreme fear'
A popular metric for measuring crypto market sentiment has entered a period of “extreme fear”.
The Fear & Greed Index swung wildly to the left following the latest cryptocurrency crash, registering a score of just 16 compared to a score of 71 last month, when sentiment was pointed towards greed.
This is the lowest level since July, when the price of bitcoin briefly fell below $30,000. What followed was a solid market rally leading to new all-time highs, with some analysts and market commentators using the metric as a signal to buy. “Extreme fear, buy. Extreme Greed, sell,” one investor noted. “Rinse and repeat.”
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