Ripple, Ethereum, Bitcoin: Buy the Dips?
Top cryptocurrencies slipped by 13 to 25 percent on Tuesday, as investors appeared to abandon digital assets. Leading cryptocurrency bitcoin has fallen to just under $12,000, representing a 40-percent drop from its record highs.
Ethereum dropped 18 percent, Ripple fell 24 percent, while bitcoin cash plummeted 23 percent. Market capitalization of digital money has slid by 23 percent to $593 billion. The move is in line with Fibonacci retracements that we see in other markets, this is not a crash.
There have been various fake news reports of bans and crackdowns that are in fact just political noise and are isolated to South Korea and China.
It is far too early to say what either country will do in relation to banning, there is too much speculation about what politicians might do.
None of the individual politicians that have voiced concerns are individuals with the power to do anything, back in the real world cryptocurrency is now part of the landscape, as their usage becomes more common place demand will increase, not every cryptocurrency is going to be a winner but there will be some that become huge.
Markets rally and markets fall, sometimes they crash but they do recover, cryptocurrency will stand the test of time.
Behind that is the ever growing implementation of Blockchain technology, some of these firms with cryptocurrency could make it big in other areas.
Bitcoin touched highs of $20,000 in December before plunging in the approach to Christmas. Its skyrocketing price last year has attracted institutional investors, but it has also resulted in increased control from regulators.
Last week, South Korea announced a crackdown on bitcoin and other cryptocurrencies, but backtracked after negative feedback from the public. China has already banned initial coin offerings and some other operations involving digital currencies. Russia is preparing legislation to regulate cryptocurrencies, which is likely to be introduced in the first half of this year.