Chute bitcoin - can
Cryptocurrency bubble
Parts of this article (those related to documentation) need to be updated. Please update this article to reflect recent events or newly available information.(January ) |
Predictions of a collapse of a speculative bubble in cryptocurrencies have been made by numerous experts in economics and financial markets.
Bitcoin and other cryptocurrencies have been identified as speculative bubbles by several laureates of the Nobel Memorial Prize in Economic Sciences, central bankers, and investors.
In , there was a large sell-off of cryptocurrencies. From January to February , the price of bitcoin fell 65 percent.[1] By September , the MVIS CryptoCompare Digital Assets 10 Index had lost 80 percent of its value, making the decline of the cryptocurrency market, in percentage terms, larger than the bursting of the Dot-com bubble in [2] In November , the total market capitalization for bitcoin fell below $ billion for the first time since October ,[3][4] and the Bitcoin price fell below $4,, representing an 80 percent decline from its peak the previous January.[5] From March 8–12, , the Bitcoin price fell by 30 percent from $8, to $6, (with it down 22 percent on March 12 alone).[6] By October , Bitcoin was worth approximately $13,[7]
In November of , Bitcoin again surpassed its previous all time high of over $19,[8] After another surge on 3 January with $34,, bitcoin crashed by 17 percent the next day.[9] Bitcoin traded above $40, for the first time on 8 January [10]
Bitcoin[edit]
Bitcoin has been characterized as a speculative bubble by eight winners of the Nobel Memorial Prize in Economic Sciences: Paul Krugman,[11]Robert J. Shiller,[12]Joseph Stiglitz,[13]Richard Thaler,[14]James Heckman,[15]Thomas Sargent,[15]Angus Deaton,[15] and Oliver Hart;[15] and by central bank officials including Alan Greenspan,[16]Agustín Carstens,[17]Vítor Constâncio,[18] and Nout Wellink.[19]
The investors Warren Buffett and George Soros have respectively characterized it as a "mirage"[20] and a "bubble";[21] while the business executives Jack Ma and Jamie Dimon have called it a "bubble"[22] and a "fraud",[23] respectively. J.P. Morgan Chase CEO Jamie Dimon said later he regrets calling bitcoin a fraud.[24]
Altcoins[edit]
Since the release of bitcoin, over 6, altcoins (alternative variants of bitcoin, or other cryptocurrencies) have been created.
A January article by CBS cautioned about a cryptocurrency bubble and fraud, citing the case of BitConnect, a British company, which received a cease-and-desist order from the Texas State Securities Board. BitConnect had promised very high monthly returns but hadn't registered with state securities regulators or given their office address.[25]
Initial coin offerings[edit]
Wired noted in that the bubble in initial coin offerings (ICOs) was about to burst.[26] Some investors bought ICOs in hopes of participating in the financial gains similar to those enjoyed by early bitcoin or Ethereum speculators.[27]
Binance has been one of the biggest winners in this boom as it surged to become the largest cryptocurrency trading platform by volume. It lists dozens of digital tokens on its exchange.[28]
In June Ella Zhang of Binance Labs, a division of the cryptocurrency exchange Binance, stated that she was hoping to see the bubble in ICOs collapse. She promised to help "fight scams and shit coins".[29]
boom and crash[edit]
The cryptocurrency crash[30][31][32][33][34] (also known as the Bitcoin crash[35] and the Great crypto crash[36]) is the sell-off of most cryptocurrencies from January After an unprecedented boom in , the price of bitcoin fell by about 65 percent during the month from 6 January to 6 February Subsequently, nearly all other cryptocurrencies also peaked from December through January , and then followed bitcoin. By September , cryptocurrencies collapsed 80% from their peak in January , making the cryptocurrency crash worse than the Dot-com bubble's 78% collapse.[36] By 26 November, bitcoin also fell by over 80% from its peak, having lost almost one-third of its value in the previous week.[37]
Timeline of the crash[edit]
- December 17, bitcoin's price briefly reaches its all time high of $19,[38]
- December 22, , bitcoin fell below $11,, a fall of 45% from its peak.[39]
- January 12, , Amidst rumors that South Korea could be preparing to ban trading in cryptocurrency, the price of bitcoin depreciated by 12 percent.[40][41]
- January 26, , Coincheck, Japan's largest cryptocurrency OTC market, was hacked. million US dollars of the NEM were stolen by the hacker, and the loss was the largest ever by an incident of theft, which caused Coincheck to indefinitely suspend trading.[42]
- From 26 January to 6 February, the price of bitcoin halved, and reached 6, US dollars.[citation needed] Additional negative news for the cryptocurrency market continued in the first quarter of [citation needed] The price remained low though the level slightly recovered in the first quarter of [citation needed]
- March 7, , Compromised Binance API keys were used to execute irregular trades.[43]
- Late March , Facebook, Google, and Twitter banned advertisements for initial coin offerings (ICO) and token sales.[44]
- November 15, , bitcoin's market capitalization fell below $ billion for the first time since October and the price of bitcoin fell to $5,[45][46]
Early Bitcoin boom[edit]
In early , bitcoin price witnessed another boom, soaring more than % since March [47] and surged above the $40, mark for the first time on January 7. On January 11, the UK Financial Conduct Authority warned investors against lending or investments in cryptoassets, that they should be prepared "to lose all their money".[48]
See also[edit]
References[edit]
- ^Popken, Ben (February 2, ). "Bitcoin loses more than half its value amid crypto crash". NBC News. Archived from the original on
- ^Patterson, Michael (September 12, ). "Crypto's 80% Plunge Is Now Worse Than the Dot-Com Crash". Bloomberg. Archived from the original on
- ^Huang, Eustance (November 14, ). "Bitcoin market cap falls below $ billion for first time since October ". CNBC. Archived from the original on
- ^Meyer, David (November 15, ). "The Entire Cryptocurrency Scene—Including Bitcoin—Is Plummeting Again. These Might Be the Reasons Why". Fortune. Meredith Corporation. Archived from the original on
- ^Russilillo, Steven (26 November ). "Bitcoin Continues Steep Fall as Cryptocurrency Collapse Worsens". The Wall Street Journal. Archived from the original on
- ^Wilson, Tom (March 12, ). "Bitcoin plummets as cryptocurrencies suffer in market turmoil". Reuters. Thomson Reuters. Retrieved March 12,
- ^Nagarajan, Shalini. "Bitcoin doesn't care who wins the US election - it will rise in value regardless of the outcome, a cryptocurrency fund chief says | Currency News | Financial and Business News | Markets Insider". conwaytransport.com.au. Retrieved
- ^"Bitcoin Jumps to Record High as Bulls Say This Time Is Different". conwaytransport.com.au. 30 November
- ^Cooper, Amanda (). "Bitcoin plummets 17% for its biggest drop since March as its record-shattering rally stumbles". Business Insider France (in French). Retrieved
- ^"BTCUSD | Bitcoin USD Overview". MarketWatch. Retrieved
- ^Krugman, Paul (January 29, ). "Bubble, Bubble, Fraud and Trouble". The New York Times. Archived from the original on
- ^Shiller, Robert (1 March ). "In Search of a Stable Electronic Currency". New York Times. Archived from the original on 24 October
- ^Costelloe, Kevin (November 29, ). "Bitcoin 'Ought to Be Outlawed,' Nobel Prize Winner Stiglitz Says". Bloomberg. Archived from the original on
- ^"Economics Nobel prize winner, Richard Thaler: 'The market that looks most like a bubble to me is Bitcoin and its brethren'". ECO Portuguese Economy. 22 January Archived from the original on
- ^ abcdWolff-Mann, Ethan (April 27, ). "'Only good for drug dealers': More Nobel prize winners snub bitcoin". Yahoo Finance. Archived from the original on
- ^Kearns, Jeff (4 December ). "Greenspan Says Bitcoin a Bubble Without Intrinsic Currency Value". conwaytransport.com.au. Bloomberg LP. Archived from the original on 29 December
- ^"Central banker takes stab at bitcoin 'bubble'". conwaytransport.com.au AFP. February 6, Archived from the original on
- ^"Bitcoin is like Tulipmania, says ECB vice-president". The Financial Times. 22 September Archived from the original on 30 September
- ^"Bitcoin hype worse than 'tulip mania', says Dutch central banker". The Guardian. 4 December Archived from the original on 20 March
- ^Crippen, Alex (14 March ). "Bitcoin? Here's what Warren Buffett is saying". CNBC. Archived from the original on 13 January Retrieved 11 January
- ^Porzecanski, Katia (25 January ). "George Soros: Bitcoin is a bubble, Trump is a 'danger to the world'". Globe and Mail. Bloomberg News. Archived from the original on 9 June Retrieved 7 June
- ^Yang, Yingzhi (18 May ). "There's a bitcoin bubble, says Alibaba executive chairman Jack Ma". South China Morning Post. Archived from the original on 10 June Retrieved 10 June
- ^Cheng, Evelyn (7 June ). "Warren Buffett and Jamie Dimon on bitcoin: Beware". CNBC. Archived from the original on 9 June Retrieved 7 June
- ^Kim, Tae (). "Jamie Dimon says he regrets calling bitcoin a fraud and believes in the technology behind it". CNBC. Retrieved
- ^"5 reasons to tread carefully in cryptocurrencies". CBS. January 5, Archived from the original on
- ^"The ICO bubble is about to burst but that's a good thing, Expect a slowdown in ICOs in , as token sales become less of a Wild West". Wired. 12 December Archived from the original on
- ^"Explaining the new cryptocurrency bubble—and why it might not be all bad Investors are pouring tens of millions of dollars into new cryptocurrencies". Arstechnica. October 5, Archived from the original on
- ^Camila, Russo (). "Binance's Venture Fund Head Is Waiting for ICO Bubble to Burst". Bloomberg. Archived from the original on
- ^Russo, Camila (4 June ). "Binance's Venture Fund Head Is Waiting for ICO Bubble to Burst". Bloomberg. Archived from the original on
- ^Popken, Ben (February 2, ). "Bitcoin loses more than half its value amid crypto crash". NBC News. Archived from the original on
- ^Silcoff, Sean (February 13, ). "OMERS-affiliated Ethereum Capital offering pinched, but not pulled, following choppy markets and cryptocrash". The Globe and Mail. The Woodbridge Company. Archived from the original on
- ^"Crypto crash: bitcoin drops to lowest point since November". The Week. February 2, Archived from the original on
- ^Smith, Noah (February 8, ). "Crypto Cynics Stand to Profit the Most". Bloomberg. Archived from the original on
- ^Chaparro, Frank (February 2, ). "ROUBINI: 'The Mother Of All Bubbles And Biggest Bubble in Human History Comes Down Crashing'". Business Insider. Archived from the original on
- ^Kaplan, Michael (September 11, ). "Bitcoin crash: This man lost his savings when cryptocurrencies plunged". CNN. Archived from the original on
- ^ abPatterson, Michael (September 12, ). "Crypto's 80% Plunge Is Now Worse Than the Dot-Com Crash". Bloomberg. Archived from the original on
- ^Russilillo, Steven (26 November ). "Bitcoin Continues Steep Fall as Cryptocurrency Collapse Worsens". The Wall Street Journal. Archived from the original on
- ^"Bitcoin Hits a New Record High, But Stops Short of $20,". Fortune. Archived from the original on
- ^Martin, Will (December 22, ). "Bitcoin swings wildly as its price plunges". Business Insider. Archived from the original on
- ^Choudhury, Saheli Roy (January 11, ). "South Korea is talking down the idea a cryptocurrency trading ban is imminent". CNBC. Archived from the original on
- ^Kharpal, Arjun (January 11, ). "Over $ billion wiped off global cryptocurrency market following talk of South Korea trading ban". CNBC. Archived from the original on
- ^Mochizuki, Takashi; Vigna, Paul (January 26, ). "Cryptocurrency Worth $ Million Missing From Japanese Exchange". The Wall Street Journal. Archived from the original on
- ^"Summary of the Phishing and Attempted Stealing Incident on Binance". Binance. Archived from the original on
- ^Russo, Camila (March 26, ). "Twitter Joins Facebook, Google in Banning Crypto Coin Sale Ads". Bloomberg. Archived from the original on
- ^Huang, Eustance (). "Bitcoin market cap falls below $ billion for first time since October ". CNBC. Archived from the original on
- ^"The Entire Cryptocurrency Scene—Including Bitcoin—Is Plummeting Again. These Might Be the Reasons Why". Fortune. Archived from the original on
- ^"Bitcoin boom threatens to turn it into pure gold". CNBC. 9 January
- ^"Crypto investors 'should be prepared to lose all their money,' top UK regulator warns". CNBC. 11 January
-
-