This was unexpected, but a little dry powder in my credit union account was put to work just now. I have that account earmarked solely for my NFT proceeds later this year.
The very short story…went to Coinbase to the Pro trading platform. I have bought $160 worth of Eth a few weeks ago to work with on Opensea. That was not for trading or investing.
Announced elsewhere Binance which is larger than Coinbase…1 and 2 by size respectively…had halted all trading of BTC. I wanted to see what was happening. Coinbase is a much more sturdy platform than Binance.
The trading desk had BTC down over 15% and Ethereum down over 18%.
What I discovered to my chagrin, Coinbase lists the percentages of traders buying and selling. Some 81% of BTC trades were purchases and some 72% of Eth trades were purchases. Volume is way up.
These are the day or two of a capitulation. The smart money is rushing in as with any market.
How far this travels I do not know of course. There could be another day or two of rough trading.
Eth is down from the $4700 area to the $1200 area this year. I’d call that by any metric a bottom.
Eth is down from the $4700 area to the $1200 area this year. I’d call that by any metric a bottom.
Why would it necessarily be a bottom? Because the price had fallen a lot?
After all, as recently as yesterday Eth was down from the $4700 area to the $1500 area. That might have looked like a bottom. But as you point out, Eth then proceeded to lose another 20% of its value. Just because it’s lost a lot of its value already doesn’t mean it can’t lose more.
I have no idea what ETH prices will do next - just pointing out that sometimes assets will fall a lot, and then continue to lose even more.
Bottoms are always coupled with bad news. I did not include that. The difficulty bomb has been delayed.
At a bottom the smart money is buying very low. That is clear in the trading today.
Eth and BTC have fallen a lot. There is a limit to how far something of value will fall. LOL we might be parting company on that one…I wont try to convince anyone here that these have value.
The proceeds of the NFTs will end up in blue chips next year. I want much less volatility in my portfolio than cryptos.
Eth and BTC have fallen a lot. There is a limit to how far something of value will fall. LOL we might be parting company on that one…I wont try to convince anyone here that these have value.
Even accepting as true that there’s a limit to how far something of value will fall, it’s not a binary question of whether ETH has value or not. ETH might have a value, but one that’s lower than where we are now. Remember that up until January of last year, virtually every ETH in history had traded at less than $1K. Even if we stipulate that ETH has value, that value might be $900 - or $375 or $750 or whatever.
Eth is down from the $4700 area to the $1200 area this year. I’d call that by any metric a bottom.
As Albaby points out, it’s very difficult to say when the “bottom” has actually occurred with many assets, especially stocks and stock-like instruments. Cryptos sort of fall into this latter category and are treated as such, of course, for investment purposes as noted in this thread. In trying to figure out what the bottom is with cryptos, though, my assumption would be $ 0.
The proceeds of the NFTs will end up in blue chips next year. I want much less volatility in my portfolio than cryptos.
Why wait to transfer the proceeds until next year??? There apparently is, and will continue to be, quite a bit of volatility in cryptos between now and next year.
Eth is down from the $4700 area to the $1200 area this year. I’d call that by any metric a bottom. … There is a limit to how far something of value will fall.
Reasonable people differ on what, if any, value there may be in Ether. But as albaby said, even if we posit that ETH has some value, a decline of ~75%, such as seen this year, while large, is by no means any assurance whatsoever that we’re near the bottom of its drop.
Back in 2000-2001, Amazon’s stock dropped by 95% even while the company was rapidly growing and beginning to show a profit. And in 2018 ETH itself dropped by 94%.
For perspective, to get down to that level, ETH would be facing ANOTHER 75% drop, and it’s entirely possible.
Not to mention the possibility that it goes to zero, like some people say is its value.