The correction continues into the 4th week. The cryptocurrency market dropped to a low of $348 billion before rebounding back to $440 billion to end the week.
Over the previous week, Bitcoin dropped 20% to $9,100 and Ether dropped by 19% to $950.
The drop to $348 billion represents a peak-to-trough drawdown of 58% from the peak of $835 billion on January 7, making this crash the most severe one since December 2013.
Some people are comparing this crash to 2014 – but we believe the current fundamentals of cryptocurrency is much stronger than 4 years ago.
We believe this correction is a retracement from the rapid run-up in the previous months. The cryptocurrency market more than doubled from 3 months ago, which is still an extraordinary return.
The newcomers in the last couple of months got burned but this is what happens in crypto. Without the volatility, investors cannot expect to achieve outsized return over the long run.
A good way to reduce the risks of buying the top is dollar cost averaging – buying a fixed amount (in fiat) periodically. This way, you will be buying more coins when the market is down, achieving a lower cost basis for your positions.
Facebook is banning cryptocurrency and ICO ads: https://techcrunch.com/2018/01/30/facebook-is-banning-cryptocurrency-and-ico-ads/
Samsung confirms it is making ASIC chips for cryptocurrency mining: https://techcrunch.com/2018/01/31/samsung-confirms-asic-chips/
Square Cash now allows anyone to buy and sell bitcoin: https://www.engadget.com/2018/01/31/square-cash-buy-sell-bitcoin/
India's Finance Minister Strikes Stern Tone on Cryptos in Budget Speech: https://www.coindesk.com/india-finance-minister-strikes-stern-tone-cryptos-budget-speech/
State of Texas Orders ‘Decentralized Bank’ ICO Project to Cease Operations: https://news.bitcoin.com/state-of-texas-orders-decentralized-bank-ico-project-to-cease-operations/
Venezuela's President Announces 'Petro' Token Pre-Sale: https://www.coindesk.com/venezuelas-president-announces-petro-token-pre-sale/
Japanese Electronics Retail Giant Launches Bitcoin Payments: https://www.coindesk.com/japanese-electronics-retailer-launches-bitcoin-payments/
Hong Kong–Based Investment Firm Acquires Pioneering Bitcoin Exchange BTCC: https://bitcoinmagazine.com/articles/hong-kongbased-investment-firm-acquires-pioneering-bitcoin-exchange-btcc/
Articles From Crush Crypto
Insights Network ICO Review: https://crushcrypto.com/insights-network-ico-review/
Dock.io ICO Review: https://crushcrypto.com/dock-ico-review/
Sentinel Chain ICO Review: https://crushcrypto.com/sentinel-chain-ico-review/
Globitex ICO Review: https://crushcrypto.com/globitex-ico-review/
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.