- 0:30 ET, Jan 7 2022
- Updated: 0:30 ET, Jan 7 2022
THE prices of several well-known cryptocurrencies NOSEDIVED after biting Fed meeting, as the price of Pi coin is at $0.007077.
Bitcoin was down by more than 7 percent at $43.1K around 9am ET, according to Coinbase.
Shiba Inu had dipped by over 8 percent, while Ethereum was down drastically almost 12 percent as well, according to CoinBase.
The drops came after stocks slid on Wednesday following the release of minutes from the Federal Reserve’s December meeting.
Policymakers at the meeting indicated a plan to start cutting bond holdings. The central bank will also begin to raise interest rates.
Crypto market analyst Yuya Hasegawa said Bitcoin could potentially drop much lower.
“The downward pressure on the price is expected to continue until the market fully prices in the tighter-than-expected future monetary policy,” Hasegawa said in an emailed note to CNBC.
Read our cryptocurrency live blog for the latest news and updates…
Shiba Inu Coin, continued
Whether you’ve already invested or not, keep in mind that making money through cryptocurrencies or other investments is never guaranteed, even with a popular one like Shiba Inu.
Cryptocurrencies are especially volatile, so their values can crash with little to no notice.
Helium on the rise
Helium crypto price predictions have soared and may be the next cryptocurrency to explode in 2022.
Experts have predicted it will be a lucrative investment in the crypto space. as price predictions heated up before its big launch in 2021 because the network connects people through shared hot spots.
It was up over 9 percent in the past 7 days on Coinbase as of Tuesday afternoon.
Who is behind Algorand?
The Algorand Foundation based in Singapore is behind the project.
Algorand claims that it speeds up transactions and improves efficiency when compared to bitcoin and other blockchains.
What is Algorand?
Algorand is a cryptocurrency of the Algorand blockchain, a public decentralized network on which smart contracts can be built.
It was created in 2019 by Silvio Micali, a professor a the prestigious Massachusetts Institute of Technology (MIT).
The computer scientist has also won the Turing Award for his work in the area of cryptography.
Steven Seagal’s Bitcoin scandal
Under Siege and Half Past Dead hardman Steven Seagal was paid to promote “Bitcoiin2Gen” (B2G) which saw 500 investors left out of pocket in cash and other cryptocurrencies as he unwittingly ended up backing the scam.
Seagal reportedly had been offered $250,000 along with £750,000 worth of B2G for appearing in promotional materials for the con artists.
He appeared in a press release for them and “wholeheartedly” endorsed the scheme in a post to his 7million followers on Facebook.
What is Dogecoin?
Dogecoin is a cryptocurrency and was first launched back in 2013.
Dogecoin has the image of a Shiba Inu dog as its logo.
The image became a popular internet meme called doge, and it features the dog surrounded by text in the comic sans font with words like “much wow”.
Software engineers Jackson Palmer and Billy Markus originally created Dogecoin as a joke based on this meme.
It has been marketed as the “fun” version of bitcoin but has gained in value and attracted more serious interest since then.
Risks of crypto investments, part 2
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved
Risks of crypto investments, part 1
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
The crypto market has also been battered by India’s plans to ban all private cryptocurrencies – aside from a few exceptions – and launch a central bank-backed official digital currency.
Cryptocurrencies are highly volatile, meaning their values often make large swings with no notice, as the latest plunge shows.
Investing in cryptocurrency is a very risky business.
You can be left with less money than you put in, and could even lose it all.
You might not be able to access your investment if platforms go down and you could be left unable to convert crypto back into cash.
There have also been warnings around scams related to cryptocurrencies, with people losing vast sums of money.
You should never invest in something you don’t understand and you should never put in money that you can’t afford to lose entirely.
Why is the crypto market down?
The latest plunge follows a crypto crash at the start of December shortly after Bitcoin hit a record high of $69,000.
Of 100 cryptocurrencies listed on Coinmarketcap, the price of 97 fell.
Crypto markets were wiped by $1.5trillion after the December 4 crash, but the market has since recovered some of those losses.
One trader lost $5billion after the price of bitcoin plummeted, highlighting the risks of investing in crypto.
It was revealed recently that 90% of all bitcoins have been mined.
It comes as new research shows that 18.89million coins have been mined out of 21million, which is the maximum.
And in another recent blow to the market came as one of the biggest crypto exchanges, Binance, said it will close its trading platform in Singapore after clashing with regulators.
Crypto market down today
Today, the global crypto market is down 8.97% over the past 24 hours, with the biggest losers including big names like Shiba Inu.
The drop occurred after uncertainty in the wider US economic market was reported, with the US Federal Reserve discussing hiking interest rates in March sooner than expected according to CoinDesk.
Ethereum is down 10.98% over a 24 hour period, with Solana down 12.44% and Dogecoin down 9.16%.
Expert predicts Bitcoin crash
One finance expert thinks Bitcoin’s worth could tank as low $10,000 per coin.
Carol Alexander, professor of finance at Sussex University, told CNBC that Bitcoin will “probably crash” in 2022.
The professor warned last year: “If I were an investor now I would think about coming out of Bitcoin soon because its price will probably crash next year.”
She referred to Bitcoin as more of a “toy” than an investment.
The most valuable cryptocurrencies
Cryptocurrency prices hit record highs earlier this year amid interest from high profile individuals such as Elon Musk and more institutional investment in the sector.
Values can be volatile though and regulators have warned that investors could lose all their money.
Crypto-crimes hit a high in 2021
According to a recent study, cryptocurrency-based crimes reached a record peak last year.
Criminal transactions, on bitcoin and other cryptocurrency platforms, totalled $14billion, up 79 percent from 2020, according to data group Chainalysis.
However, the group isn’t worried.
“In fact, with the growth of legitimate cryptocurrency usage far outpacing the growth of criminal usage, illicit activity’s share of cryptocurrency transaction volume has never been lower,” Chainalysis said.
China’s statement on cryptocurrency, continued
Bitcoin, the world’s largest digital currency, and other cryptos cannot be traced by a country’s central bank, making them difficult to regulate.
The crypto crackdown opens the gates for China to introduce its own digital currency, which it is already working on and will allow the central government to monitor transactions.
China’s statement on cryptocurrency
The PBOC said it will “resolutely clamp down on virtual currency speculation, and related financial activities and misbehaviour in order to safeguard people’s properties and maintain economic, financial and social order”.
It said that trading of virtual currencies had become “widespread, disrupting economic and financial order, giving rise to money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities.”
Top five NFTs of 2021
Last year, Non-Fungible Tokens exploded in popularity.
Here is a list of the top five NFTs by price in 2021, according to Investopedia.
- Everydays: The First 5,000 Days – a collage by Mike “Beeple” Winklemann
- Human One – a “kinetic video sculpture” by Winklemann, again
- Cryptopunk #7523 – pixel art character that resembled a “Covid alien”
- Cryptopunk #3100 – pixel art character with blue and white headband
- Cryptopunk #7804 – pixel art character alien smoking a pipe
How risky are NFTs?
Buying an NFT is risky because it’s like buying a collectible. It is a bet on whether or not the value of the item will go up.
NFTs are also still a new market, so it may not be as in demand as other markets yet.
Why are NFTs popular?
Non-Fungible Tokens give collectors the chance to own an entirely unique digitized item.
Crypto commentator Jonathan Marriott said that people like the sense of community around the works.
What is an NFT?
A Non-Fungible Token is a digital piece of work, like art or music, stored on a blockchain.
It cannot be replicated and it’s unique to whoever owns it.
It has become a popular digital collectable as influencers, artists and celebrities use NFTs to promote their brands or products.
Risks of Robinhood, part two
For investing individual stocks, make sure you check company reports, Securities and Exchange Commission (SEC) filings, broker notes, and press releases so you can make the best decisions for your money.
Another risk when choosing Robinhood along with other brokers is that they can restrict trading when there’s unusual activity.
Risks of Robinhood
When it comes to risks, investing alone is one because you’re not guaranteed to generate a profit and the value of your assets could fall.
If you’re choosing Robinhood so you can trade stocks and cryptocurrencies – then the game gets even riskier.
Cryptocurrencies are not only difficult to understand but even tougher to predict when bearish trends in the market will take place.
For example, cryptocurrency was thriving this year up until Elon Musk said that Tesla was halting the acceptance of payments in Bitcoin.
Upstate NY Town Supervisor makes anti-vax cryptocurrency
The Republican leader said that he spent $20K of his own money creating the coin, called “FucVax.”
To acquire Fucvax, a form of “digital protest,” people first have to buy its father coin Avalanche.
According to the Daily Gazette, Goldstein initially made 200,000 digital tokens, with a value of one penny each. He said each token is now valued at $0.24 and 147 people currently hold FucVax coins, including Canajoharie residents.