Ethereum drops to below 2000 USD. Bitcoin drops 17%. Other Alts looking under pressure and in the red. Coinbase Co-founder warns of impending bitcoin “death cross”.
The crypto markets continue to take losses, possibly caused by increasing FUD (Fear, uncertainty and doubt) thanks to the Chinese government’s increasingly aggressive stance to rid the country of crypto (which they don’t control). Other governments are naturally following suit and being increasingly anti-bitcoin as more and more central banks are moving towards their own (likely debt-ridden) CBDC’s. Just last week, we reported about the Bank of England trashing Bitcoin, whilst hyping their own digital currency and pushing for the Great Reset agenda.
As altcoins in general continue to follow the market trend of the big Daddy crypto, today, the second ranked market cap crypto Ethereum slumped to under the $2000 mark, before rebounding slightly. This is the first time since May 23rd that ETH has seen the wrong side of this important psychological level, and many analysts are concerned about further declines in the overall market.
Coinbase co-founder warns of Bitcoin ‘Death Cross’
Coinbase co-founder Fred Ehrsam issued his own price warning about an approaching “death cross”, where the short term average price of a stock drops below the long term average.
Ehrsam warned investors that this could mean 90 percent of all non-fungible tokens (NFTs) failing in three to five years. Naturally, it’s difficult to understand what he means by this, because the price action has little bearing on the ability to buy, hold and transact using NFT’s. He went on to further doom-monger saying that this could mean many crypto assets wouldn’t work (again, we challenge this assertion).
But some who have been in the crypto sphere for a lot longer are less bearish, and this kind of price action has happened many times before. Bitcoin regularly has huge pops, which are amplified by plenty of FOMO buying, especially amongst green retail investors, with whales (which are now including institutions and mega-corporations) profiting by dumping their positions to create market-wide panic.
More importantly, a significant correction such as this presents great opportunities for investors to load up at a much cheaper price. It’s worth remembering that the Bitcoin price at the start of the year was under $30,000, which means anyone who bought Bitcoin prior to 2021 is in profit.
Ethereum drops to below 2000? So what?
When it comes to Ethereum, the same is true, but with even greater profits. At the start of the year, ETH was trading at $730.
This happens every time we see bearish swings in the crypto market… the doom-mongers come out of the woodwork to tell every crypto investor that they’ve backed the wrong horse. Anyone might think that the media frenzy around it is just a ploy to get newer investors to sell at a loss. The same happened when Bitcoin hit previous all time highs, and it wasn’t that long ago a drop from $2000 high was being touted as the end of the line for crypto. Some long-term hodlers may beg to differ!
Some might also argue that a good drop is simply a normal market correction after a spectacular period of huge growth in the overall crypto market. Yes, it’s good for swing traders to make great gains (and losses of course), but for people who’s strategy is long term buy-and-hold, this is par for the course, and nothing at all to concern themselves with.
Afterall, when you are eyeing multi-six-figure price targets, who really cares whether a retracement from $64,000 to $32,000 has taken place? And if Ethereum drops to below $2000, many will simply see this as a buy signal, and time to load up again. The real question which every crypto-holder should be asking themselves is simply what is their outlook over time, and why did they get into crypto in the first place? That should help many people feel much better.