Serious Bitcoin Warning Issued Even as Ethereum, BNB, Solana, Cardano and XRP Rebound from Crash

Serious Bitcoin Warning Issued Even as Ethereum, BNB, Solana, Cardano and XRP Rebound from Crash

Bitcoin and cryptocurrency prices rebounded after crashing as the Russian invasion of Ukraine sent shockwaves through global markets.

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The price of bitcoin fell below $35,000 per bitcoin this week before bouncing back to near $40,000. The other top ten cryptocurrencies Ethereum, BNB, Solana, Cardano and XRP also swung wildly. Despite successfully reversing it this week, the combined bitcoin and crypto market remains down nearly 50% from its November peak as a surprising array of issues bites.

Now the managing director of one of the world’s largest cryptocurrency trading platforms has warned that the recent downturn could be the start of a scary new crypto winter – a bear market that could see the price of bitcoin and of ethereum fall 90% from their historical level. tops.

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“If this circle continues, we are now at the start of a bear market,” said Du Jun, co-CEO of Huobi, a Seychelles-based cryptocurrency exchange. CNBC in the comments translated from Mandarin.

Du pointed to the timing of bitcoin’s supply halving when the current stream of new bitcoins hitting the market each day is expected to halve, as it did in 2020 and 2016. After each of these halvings d supply, the price of bitcoin peaked the following year.

“Following this cycle, it’s not until late 2024 early 2025 that we can welcome the next bitcoin bull market,” Du said.

“It’s just supply and demand at the end of the day,” Cory Klippsten, managing director of bitcoin buying app Swan Bitcoin, said via Telegram. “Investors really only need to focus on the demand side of the equation due to bitcoin’s inelastic supply.”

When bitcoin last fell in an extended bear market in 2018 and 2019, the price of bitcoin was at one point down nearly 90% from its 2017 high, suggesting that the price of bitcoin bitcoin could fall back below $10,000 per bitcoin.

The price of bitcoin, ethereum, BNB, solana, cardano and XRP are all down about 50% from last year’s highs, the downturn originally triggered by the Reserve US federal government signaling that it will soon raise interest rates and begin to scale back its pandemic-era stimulus measures.

“It’s really hard to predict exactly because there are so many other factors that can also affect the market, like geopolitical issues, including war, or recently Covid, also affect the market,” Du added.

The Russian invasion of Ukraine this week sent bitcoin and cryptocurrencies plummeting as investors fled to traditional safe havens such as gold. The panic, however, appears to have been short-lived.

“It appears the invasion was a ‘sell the rumour, buy the news’ event, where risky assets were bought aggressively as it was confirmed that Russia was indeed invading,” Marcus Sotiriou, analyst at a brokerage in digital assets based in the UK. GlobalBlock, wrote in an emailed note. “The market doesn’t like uncertainty, so as soon as we had some clarity on the long-running crisis, buyers stepped in.”

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MORE FORBESCrypto Data Reveals Potential Price Surprise for Bitcoin and Ethereum Like BNB, Solana, Cardano and XRP Whipsaw

Despite extreme price swings in bitcoin and other cryptocurrencies, many bitcoin enthusiasts remain optimistic about bitcoin’s prospects, although bitcoin’s so-called highs are less optimistic about ethereum, its biggest rivals BNB, solana, cardano and smaller coins like XRP.

“What we’re seeing in the broader ‘crypto’ market is not surprising to people in the bitcoin industry,” Swan Bitcoin’s Klippsten added. “There were high levels of speculation and a lot of risky behavior in [the crypto market] which I believe is a result of the ultra low rate environment we find ourselves in today.”

Klippsten warned that smaller cryptocurrencies could lose 99% of their value, as they have in the past, but points to bitcoin’s past performance as proof that it can recover.

“Bitcoin has repeatedly recovered from these crypto winters with a higher percentage of its investor base made up of doomed long-term investors.”