Bitcoin Crashes Below $8,000 As Crypto Rout Accelerates

Things are going from bad to worse for Bitcoin and for cryptocurrencies in general.

Yesterday, the dour news continued to pile up when India’s finance minister Arun Jaitley said this about cryptocurrencies in his budget speech:

The government does not consider cryptocurrencies legal tender or coin and will take all measures to eliminate use of these cryptoassets in financing illegitimate activities or as part of the payment system.

That came hot on the heels of last Friday’s Coincheck theft and this week’s news that the CFTC subpoenaed Bitfinex and Tether.

 

Well now, Bitcoin has fallen below $8,000 in Coinbase pricing:

Bitcoin

And in Bloomberg pricing:

  • BITCOIN FALLS BELOW $8,000 FOR FIRST TIME SINCE NOVEMBER

For once, Ethereum isn’t immune. Indeed, the entire space is similarly afflicted on Friday and if you chart the declines since the Coincheck theft, the picture is not pretty:

Crypto

For whatever this is worth, Nouriel Roubini was out with some rather foreboding tweets on Friday. To wit:

Bottom line: it ain’t lookin’ good, folks…

Biotcoin2

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5 thoughts on “Bitcoin Crashes Below $8,000 As Crypto Rout Accelerates

  1. The Bitcoin Bubble crashing is, indeed, hilarious to see in real time.

    I still continue to take issue with classifying Bitcoin as a bigger bubble than the Mississippi bubble, though, as Roubini has. In strict monetary terms I’m not sure it’s true. But even if it is, the intensity of the Mississippi bubble was due to its progenitor having been granted control over both the French Treasury and French Monetary supply and basically collateralizing his (and the State’s) exorbitant spending with worthless paper. Because the Mississippi bubble infiltrated every corner of the French State, having an especially acute impact on the landed classes, I would say it was much, much more intense than Bitcoin.

    The differences probably don’t matter to most, and the headlines are certainly better when we call something “the worst X” of all time, but keeping things in a proper context is beneficial when your living revolves around capital allocation.

  2. I’d love to hear from those folks who were buying the dip a few weeks ago from 14k down to about 9,500. How are they feeling about that today, I wonder?

      • A few pretty bold and unfounded assumptions inherent in your post @Raj: 1) Bitcoin holders/traders/investors have the financial wherewithal to hold on to an ephemeral “asset” for 5 years despite significant interim pain and loss; 2) Bitcoin will somehow rise 10x from the level at which it trades today, implying a market value somewhere in the vicinity of $1.5 trillion, based on today’s Bitcoin reported market cap of $150bn; 3) Bitcoin itself, even if proven to be based on an efficacious technology, is still the best-run and most technologically acceptable “currency” sitting atop the blockchain tech (an extremely bold pronouncement given how uncertain the outcome of the intensely competitive cryptographic verification space is at the moment).

  3. Well ive already cashed out a 785% profit, with a whole lot left in the tank. So yeah I don’t really care if it plunges, heres one guy with the wherewithal. Anyways I thought the bubble popped in 2013? Is this a new bubble or were the people that were positive the bubble burst 5 years ago wrong?

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