One day you’re on top of the world, making headlines for your upcoming appearance on SNL. Not long after, you’re the laughing stock of the internet. That’s the curse of Dogecoin, which, along with Bitcoin, Ethereum and pretty much every other cryptocurrency, have been tumbled in value over the past week.
The latest free fall is most likely the result of Chinese spectacular Crypto Regulations
On the other hand one cannot just ignore the fact that causing the market currently being inundated with supply as Chinese miners have been selling their crypto to cover the cost of shuttering operations,” he explained. “This is having a negative impact on all prices, with altcoins being the most impacted,” the analyst added.
Mancini said that savvy investors “may want to watch Bitcoin for increased order book interest in the $20,000 range,” suggesting that it could fall to that level, signaling a possible reversal is at hand, however.
To be sure, there is no one-size-fits-all model for investing in crypto and buying is dependent on investors’ tolerance to losses and their long-term perspective, strategists note.
Dogecoin, for instance, dropped more than 30%, to under 20 cents. That’s a huge fall from its stratospheric high of 70 cents back in April. Bitcoin slumped to around $29,500, a fall of more than 10%, while Ethereum has crumbled 15%. Ether’s fall has affected thousands of altcoins, most of which are built off the Ethereum blockchain and have a chunk of their value weighted in Ether coins. The entire market has trended down 12%, according to Coinbase, a cryptocurrency exchange.