Crypto Sale Now On!

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The last 48 hours has been a volatile ride for cryptocurrency investors.

Bitcoin (BTC) is down 12.9%, Ethereum (ETC) has fallen 20.3%, and Ripple (XRP) is down 20.2%. Litecoin (LTC) has held up comparatively well, and is only down 3.08% at time of writing.

Some of the less well-known cryptocurrencies have fallen even further. Byteball has collapsed in value by 33.2%.

And Bancor, which only recently completed its initial coin offering (ICO) last month, is already down 20.3%. Not a great start for early investors.

What’s behind the decline in cryptocurrencies?

A broad-based fall such as this suggests a natural pullback based on the strength of recent price rises. Like all markets, cryptos go through periods of irrational exuberance and unjustified despair.

And as this field is highly complex and uncertain, the volatility is higher than any other investible asset class.

However, there are also a couple of big fundamental stories playing out across the two leading names that are contributing to the falls.

First, the Bitcoin scaling debate is heating up, with two or three counter proposals competing for support from the community.

These issues will resolve themselves one way or the other. Then, as always, the Bitcoin project will continue to move forward.

But, in the short term, sharp falls can cause weak holders to fold quickly.

Litecoin appears to be the biggest winner of this in the short term, and it’s one reason the price is holding up comparatively well.

Secondly, the recent rapid rise of ICOs using Ethereum to fund their projects. As the ethereum price falls, it seems to be causing a cascading volume of ethereum selling as the newly-minted companies seek to preserve the funds they have just raised. Most are probably just converting ethereum into US dollars to protect their development funds from value erosion.

Revealed: The Bitcoin rival that could make you a crypto-millionaire

Report Cover Image

In a brand-new special investor report, crypto analyst, Ryan Dinse shares why he believes Ethereum is the best crypto you can invest in right now and why it could: ‘blow past Bitcoin entirely in 2017’.

As you’ll discover, Ryan believes just a small $200 stake in this cryptocurrency could balloon into $2,138 starting now.

To download your FREE report called: ‘Why Ethereum Could Be the One Coin to Rule Them All’ and take out a subscription to Money Morning.

Enter your email address below and click ‘Send My Free Report’.

We will collect and handle your personal information in accordance with our Privacy Policy. You can cancel your subscription at any time.

Don’t panic

Despite short-term volatility, the one-year gains in this sector have been phenomenal. In fact, Bitcoin is the best performing ‘currency’ year-on-year since 2010 (except 2014) on an annual basis.

And, behind the scenes, big players are starting to move.

This headline from Forbes (12 July 2017) says it all:

‘Crypto Boom: 15 New Hedge Funds Want In On 84,000% Returns’

Even more managers are sitting on the sidelines waiting (or hoping) for a major market correction to allow investing at lower levels.

If and when this money comes in, we could see some big rises towards the end of the year.

The key thing to remember is that this technology is still at the early stages of its development and, unless you are a skilled (and very brave) trader, the best approach might just be a buy and hold 5–10-year strategy.

If you can’t handle volatility, it simply might not be the right investment for you. Alternatively, only invest small amounts at this early stage, and money you can afford to lose.

For those on the other extreme, today’s panic might be tomorrow’s smart buying opportunity.

For Money Morning,

Ryan Dinse

Bitcoin Boom: How You Could Turn Every $500 You Lay Down into a $10,000 Cryptocurrency Fortune…find out here 

 

Ryan Dinse

Ryan Dinse

Ryan Dinse is an analyst at Money Morning.

He has worked in finance and investing for the past two decades as a financial planner, senior credit analyst, equity trader and fintech entrepreneur.

With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

Different market conditions provide different opportunities. Ryan combines fundamental, technical and economic analysis with the goal of making sure you are in the right investments at the right time.

His focus at the moment is as lead analyst on two of our most recent and innovative investor services, Crash Market Investor and Sam Volkering’s Secret Crypto Network.

Each service provides exciting opportunities for investors to benefit from significant market events. And both combine a big picture view with detailed analysis to find you the best ways to profit.

He is a member of Fintech Australia, a former member of the Digital Currency Council, and is a fully accredited financial adviser.

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