Digital currencies went into freefall early this week, wiping out more than 1 trillion dollars within hours. The volatile turbulence came after China’s banking association issued a warning over the risks associated with digital currencies. ETH tanked all the way to $1,800 this morning before seeing a rebound back to the $2800 level at the time this article is written.
Ethereum and related branches, such as Ethereum Classic, had their value sky-rocket over the last 3-months. Even selling at the lowest price this week, it still remains about a 50% gain since February. With the volatile nature around cryptocurrencies, it is no surprise that the price is still shaking violently as we speak. However, it is hard to tell whether another big downfall is on its way after people “bought the dip”, as cryptocurrencies tend to be sensitive when it comes to media content, from professional news outlets around the world to some rich guy’s social media platforms.
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As investors and traders it is difficult to grasp the situation as nobody really knows what is happening. At times like this, the very basic investing advice seems more relevant than ever: Invest responsibly and don’t put in more than what you’re willing to lose.
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