Wednesday, December 2, 2020

Tag: Cryptocurrencies Collapsed

Cryptocurrencies Collapsed

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by Wolf Richter, Wolf Street:
Ethereum down 52{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}, Ripple down 57{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}, EON down 70{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in eight days.

A “collapse” isn’t when something edges down 1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in value or even 10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} or 20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}; it’s when something plunges 50{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in a short time.

Ethereum has collapsed 52{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in four weeks. The second largest cryptocurrency by market capitalization had surged from $0.95 at the end of 2015 to $8.21 by the end of 2016; a gain of 764{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in one year. Then it surged to $400 by June 13, according to CoinMarketCap; a gain of nearly 5,000{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} in less than six month. Over the 18-month period, it multiplied by 421 times. That’s a 42,000{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} gain. No wonder hedge funds have piled into this madhouse. But in the four weeks since then, it has collapsed by 52{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} to $193.