Bitcoin drops below $20,000 as crypto selloff quickens
LONDON (AP) — The price of bitcoin fell below $20,000 on Saturday for the first time since late 2020, in a fresh sign that the selloff in cryptocurrencies is deepening.
Bitcoin, the most popular cryptocurrency, fell below the psychologically important threshold, dropping by as much as 9% to less than $19,000 and hovering around that mark, according to the cryptocurrency news site CoinDesk.
The last time bitcoin was at that level was in November 2020, when it was on its way up to its all-time high of nearly $69,000, according to CoinDesk. Many in the industry had believed it would not fall under $20,000.
Bitcoin has now lost more than 70% of its value since reaching that peak.
The Dow, the SPY, the Nasdaq…the cries are yet to come. The same cries. Those who never got it will be scared it is the end of their savings. They will be selling.
You know buy high sell low? Old saying? Older actions.
It’s down to $18,220 as I’m writing this. This is a fast sell-off. So much for an inflation hedge huh? The thing I’m very worried about is does this spark a sell off in QQQ now and do I finally capitulate and just sell all remaining shares I have in that?
The thing I’m very worried about is does this spark a sell off in QQQ now and do I finally capitulate and just sell all remaining shares I have in that?
I wouldn’t. The companies that make up QQQ still have underlying value. The big hitters like GOOG, MSFT, and AAPL have P/E in the low 20s, which is reasonable for fast growing companies like those. FB has a P/E of 12. The price could go lower of course, but it seems to be a reasonable value at the moment.
The Dow, the SPY, the Nasdaq…the cries are yet to come.
Sure, but there is no way any of those are going to be down 70%. OK, maybe the Naz but that would be unlikely given the heft of heavyweights like Apple, Google, and Microsoft and others. I don’t recall those kinds of tech stalwarts in the tech bubble of 2000 when the Naz lost 70%. Bitcoin & similar, with no actually business to point to, more, maybe lots more. Including to zero for many.
In fact a loss of 50% of the DOW would be extraordinary; most bear markets run between 20-30% with the occasional one reaching 40%. There have been worse, surely, but those are extraordinary, like the global credit failure of 2008, or the market crash of 1929.
But yeah, those who have invested in the “get rich quick” mode are hurting and are going to hurt worse. Just for snarks, SARK shorts everything Cathi Woods buys. SARK is up gigantically significantly amazingly more than ARKK at the moment. https://discussion.fool.com/jim-what-do-you-think-about-arkk-etf…
The thing I’m very worried about is does this spark a sell off in QQQ now and do I finally capitulate and just sell all remaining shares I have in that?
I wouldn’t. The companies that make up QQQ still have underlying value.
The damage is done to the hedge funds leveraged an into a lot of crypto.
The question is what does the messy economy in China mean to the big banks' trading desks? That is the other shoe to fall.
If the banks are caught very flatfooted they will pull funds from the QQQ, the hedge funds will be right behind them.
For the blue chips I do not know the percentages. I am not trying to work in percentages down.
I think the underlying companies will be operating extremely well. For the most part.
The financial system is about to take a major shock from China. The shock as I just posted is two months ahead of my hypothetical timeline with bank runs in China. The bottom in the hypothetical timeline was a shock in September and a bottom six months off in mid March. An echo of 2009.
The thing I’m very worried about is does this spark a sell off in QQQ now and do I finally capitulate and just sell all remaining shares I have in that?