Last month, Bitcoin (BTC) price was at its peak but it has since crashed to as low as US$33K before stabilizing at the levels between US$35K to US$40K.
I sold off BTC when it peaked and bought in tranches when prices started falling. However, I am still making a loss since prices have not recovered.
Bitcoin crashed badly as much as 40% from its peak. The reason for the crash was a slewed of bad news whereby speculators sold down Bitcoin.
Tesla will no longer accept Bitcoin as payment over climate concerns, Elon Musk
We all know every twitter that Elon Musk makes either bring the Cyptocurrency over the moon or down the valleys. The prices of Bitcoin fell 10% after he made that comment on 12th May 2021.
Chinese government crackdown
Perhaps a bubble has already appeared in Cryptocurrency and therefore the Chinese government decided to step in. On 21st May 2021, the Chinese authorities vowed to crack down on mining and trading of the Cryptocurrency.
China is known for its large Cryptocurrency mining farms which in turn hinders its green energy goals since we all know what mining consumes a lot of electricity and produces a lot of heat which is bad for the environment.
Chinese microblogging platform has banned several influential cryptocurrency accounts for its support for the Chinese government.
Is investing in Cryptocurrency such a bad idea?
The big issue for Cryptocurrency is really the lack of real world adoption and utility.
Having said that, payment giants such as Visa and Mastercard are partnering with Crypto exchanges to issue cards that rewards you with crypto such as the MCO card and Coinbase card.
S&P has recently launched three indexes to track the prices of Bitcoin and Ethereum. They are SPBTC, SPETH and SPCMC. SPBTC tracks the prices of Bitcoin and SPETH tracks the prices of Ethereum. SPCMC is a “Megacap” combo of Bitcoin and Ethereum.
If investing in Cryptocurrency is such a bad idea, why is S&P tracking them?
Too Many Coins
In my opinion, there are too many Cryptocurrency coins in the market. Not all of them can take off like Dodgecoin.
For myself, I still believe in Bitcoin and Ethereum as these are the forefathers of the rest of the coins.
My Last Words
In summary, I believe there is still potential for Bitcoin and Ethereum. Prices could go upwards or downwards and being volatile is just the nature for Cryptocurrencies.
I shall continue to accumulate BTC and ETH in small tranches while waiting for the next bull run.
If you wish to jump onto the Cryptocurrency bandwagon, Coinbase where I first got started with Crypto. You can occasionally learn to earn free coins.
Sign up using my Coinbase affiliate link and once you complete a buy or sell of $100 USD or more (or 100 USD equivalent of your domestic currency), you and I will receive 10 USD (or 10 USD equivalent of your domestic currency).