‘So, it’s a hard day. I think for many people, but for the people here at I and for many in this project, it’s just another day. It’s a Monday, and there’s going to be a Tuesday, and there’s going to be a Wednesday, and that’s the mentality, I think, you all should have if you truly want to change the world. There are hard days all the time and there are good days, but you have to keep the faith, keep the discipline, and keep pushing forward’.
Cryptocurrencies, the market kicked off a new week with deep losses, extending the weekend selling following surprisingly high U.S. inflation data and troubles for a major cryptocurrency exchange. Bitcoin has fallen more than 17% in the last 24 hours, with the currency last trading at levels not seen since December 2020, around $21,219. Bitcoin is down more than 60% from its November 2021 high. Ethereum fell more than 16% to around $1,102, and it was the lowest since December 2020. Doge Coin Meme Roy lost more than 16%. The immediate trigger for the crypto crash appears to be a massive sell-off by investors amid heightened inflation fears. Investors are also continuing to stay away from riskier assets, which is reflected in the data, showing persistent inflation pressures in May and the fastest pace of increase since December 1981.
U-crypto prices tending to be tightly correlated with the performance of U.S stocks and equity futures pointed to a bruising follow-up to Friday’s sharp losses. As investors seemed to have panicked, the number of crypto liquidations has been high since Friday. The bearish trend may likely continue in the next few days while all coins have historically underperformed bitcoin. They had the added pressure of potential regulatory roadblocks.
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A report by CoinDesk quoted an expert as saying that only a small number of all coins are likely to survive such market movements. Shivam Thakral, CEO of crypto exchange BuyUcoin, said that the rising food, gas, and energy prices are putting tremendous pressure on the crypto market as bitcoin and Ether have witnessed double-digit losses in the past 24 hours”.
Charles Hoskinson, the CEO of Cardano, has reacted to the current crypto crash on his YouTube channel while remaining optimistic that the future of crypto is great. He, however, admits that we are in a bear market and that tough times lie ahead.
‘So when you look at the Celsius, or the Terra Luna, or these other things, I think you get into a lot of trouble. When you try to financial engineer your way into super amazing guaranteed permanent returns, the reality is that any human endeavour, whether it be a technological endeavour, a commodity endeavour, or an intellectual endeavour, there’s going to be ups and downs, there’s going to be successes and failures, and there are no guarantees in that respect. Our industry is no different, and just because we’re adding the word crypto doesn’t in any way shape or form change the laws of financial physics, where in the absence of diversification, in the absence of deep research, in the absence of risk management, you’ll see tremendous volatility and inevitably a lot of winners and losers, much more biased towards the loser’s side, which our industry amplifies. Because it’s a new industry and there are exciting new things. I’ve engaged a lot with lawmakers. We’ve had very deep and detailed discussions over the last month and a half to two months and we’ve had very deep and detailed discussions. Senate hearings are coming, congressional inquiries are coming. There’s a lot of interest in the legislative branch about the future of crypto currencies. And what’s positive about that conversation is that there’s a wholesale acknowledgement amongst most reasonable politicians that crypto is here to stay. Markets go up, markets go down, some people commit fraudulent behaviour, but just like in the traditional marketplaces and traditional technologies, that in no way invalidates.
The fact that this is a revolutionary technology that has a lot of use and utility behind it, uh, that is fundamentally transformative that said rules need to be established, the game has to be kind of figured out because right now it’s not working as well as it needs to, and so finally the legislative branch is waking up to that and something will come in the United States and I believe that’s something we’ll start by ains Oxley or these other standards that ripple through the entire world. And regulations will be made in reflection of contrast to a merger in some capacity, as well as what the US standards become.
This bear market is a great opportunity. It’s an opportunity for rivalries to be set aside. It’s an opportunity for poaching to stop. It’s an opportunity for the toxicity that we see amplified by social media and by community managers trying to gain points on people to fade away and for us to collaborate on standards, on laws, on basic technology, research into these types of things. We have consistently reached out to many different organizations, from members of the hyper ledger groups ,from firefly to others, to create alliances like the UTXO Alliance and other crypto currencies like the horizons and the Ergos of the world.
We have a great relationship across the board with many of the science coins, including El Grand. In many cases, people flow back and forth between the two organizations and that will continue because we gain knowledge both ways through that collaboration.
This is how it should be in a bear market. We should be deeply considering the direction and point of what we do as an industry. We should be engaging and discussing things with people. And ultimately, we should be converging to a point where we can look back and say we did something well. It is unreasonable to believe that self-custody is the only answer for every single person. What about the person who gets Alzheimer’s? What about the person who dies suddenly? Your keys are lost. No estate planning or inheritance, solutions need to be built. The point of the industry isn’t about stripping one philosophy away and replacing it with another. The point of the industry is to give people a choice of what philosophy they follow.
They want to be in doing not deny people the right to self-custody, but also don’t tell people who choose to do something differently that they have somehow committed a moral sin. It’s a choice. We weren’t given that choice before crypto currencies. We were told how the banking system works. We were told what level of economic agency and privacy and the nature of our identity. We have for the first time ever, we have a say, It’s a small window of time and people will attempt to strip it from us if we don’t in this small window of time solidify the rights that we’re starting to give ourselves back, but the way to get there is to listen to the complaints. Listen to the concerns, the moral hazards, and the things that are happening. These days are great opportunities for those reflections on. We’re trying to solve fundamental questions. For example, we’re very concerned about the notion of decentralization. To that end, we’re going to bootstrap a decentralization index and try to start measuring things just, so we can start the conversation. It is my hope that that index can become embedded at NIST or some standards body like that and be used as a common metric that people can score to demonstrate that their ecosystems have achieved certain milestones. We need definitions for throughput. We need a consumer protection bill of rights to clearly articulate this’.
Some observers say the drop isn’t done under the rules of the road Economist Peter Schiff. One of the biggest critics of bitcoin and crypto currencies predicts that the most popular digital currency will drop at least as low as $20,000. Bitcoin alone represents a bit more than 4-5% of the crypto market, according to data firm CoinGecko. Companies like Software provider Micro Strategy, Electric vehicle producer Tesla, and FinTech block formerly square whole bitcoins on their balance sheets. The impact of bitcoin’s slump on the ranges is sharp.
Micro strategy has lost more than $910 million. Micro Strategy, billionaire Michael Saylor’s company, holds 129,218 bitcoins, 4,827 of which were purchased in the first quarter at an average price of $44,645.
In all, the firm has spent some $3.97 billion dollars on its bitcoins. After the company’s bitcoin holdings soared during crypto’s meteoric rise last November, they’re now valued at $3.05 billion, according to Bitcoin Treasuries.
Sailors’ bets on bitcoin now present a loss of at least $910 million.
No surprise, then, that Microstrategy shares slumped on June 13. At last check the stock was off 24% from Friday at $153. That’s off 72% from the start of the year.
[This article is a transcription of a video made by Savvy Finance]
Original video: https://youtu.be/MgjC7eh9sWs]