Cryptocurrency just had a terrible, terrible week

It was a dramatic and challenging week for those who are loyal to cryptocurrencies.

Last week, Bitcoin suddenly fell to half its November value. Cryptocurrencies, which cost more than $67,000 per coin in November, plummeted from $42,369 on January 18th to $33,113 on January 24th. Ethereum reached $3,263 on the 21st and fell to $2,159 on the 24th.

The sale of crypto may have been triggered by rumors that the US government will soon regulate digital currencies. The market may also have responded to the same thing that caused the stock market to sell out. I’m afraid the Federal Reserve will soon raise interest rates. In addition to anxiety, there is the current geopolitical instability of Europe caused by the possibility of Russia’s invasion of Ukraine.

As some have pointed out this week, buying cryptocurrencies is betting on future acceptance of the currency itself. It partially explains the dramatic rise and fall in the prices of Bitcoin and other cryptocurrencies. Stock prices are subject to change in beliefs about the market, but are somewhat stable in relation to the issuer’s performance.

It was pointed out that this week’s sale was far from the beginning and probably not the last.

The Qubit case was a violation of the private exchange, not the blockchain itself. Many people do not make that distinction.

“Bitcoin has been declared dead more than 400 times in mainstream media, but is back,” Alex Tapscott, managing director of Digital Assets Group at Ninepoint Partners, said in a statement Thursday. (This week, Sohale Andrus Mortazavi, Jacobin, Cryptocurrencies have been declared a “giant Ponzi scheme”. “Sure, in each market cycle, Bitcoin is back to hit new highs in price and market capitalization.”

At least this week, the fall in cryptocurrency prices has followed the fall in stock prices, including tech stocks. On Wednesday, Federal Reserve Chairman Jerome Powell gave no clue as to how much or when the rate hike would come, but hinted at the possibility of a rate hike in progress and favored the market. Not shown. Powell focuses on slowing the booming economy as a way to curb inflation.

Meanwhile, millions of cryptocurrency owners and future buyers have wondered if this is the right time to “buy a fall” in the price of the currency. Bitcoin prices have been around $37,000 since they fell to $33,113 on the 24th.

On Tuesday, the Federal Trade Commission issued a report stating that social media-based fraud increased 18-fold in 2021. More than one-third of scams were investment offers, many of which were crypto-related. “People promise huge profits and often send money in cryptocurrencies, but at the end it ends up empty-handed,” the report said.

Then on Thursday, there was news that the Biden administration was trying to order federal agencies to create regulations for digital currencies, including Bitcoin and NFTs (non-fungible tokens). The Biden White House sees cryptocurrencies as a national security issue, Barron’s Report.

Finally, late Thursday, Qubit’s decentralized financial platform confirmed reports that hackers (or hackers) stole $80 million in cryptocurrencies. Qubit, which allows users to infer cryptocurrency price fluctuations, finds the location of the stolen crypto blockchain and offers hackers a bounty in exchange for secure returns.

The Qubit case was a violation of the private exchange, not the blockchain itself. Many people do not make that distinction. This is generally considered the end of a week-long series of events that have compromised cryptographic reliability. But for many of us on the sidelines of crypto FOMO, this was a week to reassure us of what we missed.

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