During the night the Crypto coins continued with their decline, which some are calling a, “Bloodbath”. Maybe it’s just an old fashioned Meltdown and Specter issue! 🙄 They will use all sorts of fundamental logic reasoning to explain the Crypto meltdown, but in the end it has nothing to do with logic, but has everything to do with our human emotions.
Some say they are still hoarding Bitcoins but would you hang onto Bitcoins if it were to crash to below $5000? The cost of mining a single Bitcoin is around $3300, so Bitcoin can always crash back down to the cost of mining.
On about the 12th of January the entire Crypto ICO capitalization peaked very close to $736+ Billion. Since then over $300 billion of US dollar capitalization has disappeared into thin air. Bitcoins were created out of thin air, and they are now evaporating right back to where they came from. Is this $300 billion, in the lost and found? Nope, no such luck as Cryptocurrencies capitalization goes up in a puff of electronic smoke.
This market is changing very fast and I think more downside is still to come. The last thing I would trust is any wave count, as all this could be just a one hit wonder. After all, did the price of Tulip bulbs keep going higher and higher with the Elliott Wave pattern?
Not only are US dollar values evaporating back into thin air, the Gold/Bitcoin ratio has “dramatically” shifted in the last month or so. This puts Bitcoins close to the extreme cheap side in the Gold/Bitcoin ratio. Even the Gold/Bitcoin ratio should not be trusted at any extreme.
The investors that went into debt to invest in Bitcoins are going to get hit the hardest as they doubled their leveraged. With all this US dollar value disappearing into thin air, it could bring down the financial system as well. When the markets really start to implode, they could shed $30-$40 trillion by the time the dust settles.
Besides capital values disappearing into thin air the ICO’s on my list should also start to shrink from the peak of 1450.