Bitcoin has given up its support above $6,000 and fallen below the waterline for the second time in 2018, and cryptocurrency investors — including those who got into ethereum and ripple — have been sharing their stories of woe.
The bitcoin price previously dropped under the psychological $6,000 mark in late June but bounced back — and while many are hoping it will again, fear has gripped investors who hastily bought into bitcoin and other major cryptocurrencies late last year.
Bitcoin, still the world’s most valuable currency, has lost 6% of its value over the last 24 hours, according to CoinMarketCap data, falling from highs of almost $20,000 in mid-December.
Meanwhile, ethereum, which trades through the token ether, has lost a whopping 17% in 24 hours and fallen to around $290 — the first time ethereum has been below $300 this year.
Ripple is down 14%, while litecoin is down some 12% over the last 24 hours.
The total market capitalization of all cryptocurrencies has now fallen below $200 billion, the lowest (yet) in 2018, and down from a high of over $800 billion in January,
Amid the sell-off those who bought into bitcoin, ethereum, ripple and other major cryptocurrencies late last year have been sharing their stories on link aggregation site Reddit — one of the most popular sites online to discuss the fortunes of bitcoin and crypto. These posts can be found in the r/cryptocurrency subreddit, which has some 700,000 subscribers.
I’ve taken some of the key takeaways here but I’d encourage you to check out their full posts. The advice, lessons learned, and comments from fellow users who are also suffering in the rout are often insightful and interesting.
Reddit user u/hgoddyn created a post titled: Most fun I ever had losing money. Down $25,000 in crypto’s
“I got into cryptos at the end of January. Got some bitcoin early enough to ride the last wave and get hyped up, bought some more at the top and went into alts, and did some nice trades on the way down,” the Reddit user, who says they are using a different account from their primary one, writes.
“Put around $25,000 in total, spread out pretty well I thought. Not more than I could afford to lose, I thought…”
“Today I reached the tipping point where I could no longer get as much fiat out of my crypto holdings as I’ve all transactions considered net put in,” the Redditor wrote. “I honestly didn’t believe the alt market (at least the non-shitcoin portion) would ever hit these levels. Well, I can only think of one thing to do. Time to double down. I”m either winning big or going down with the ship.”
“My first purchase was LTC [litecoin] at $300 in December 2017. Luckily I only bought two coins,” the Reddit user wrote. “So after some research, I made my second purchase and got bitcoin cash at $2,000 this seemed like a no-brainer. I saw it was $4,000+ so I figured at $2,000 it was a bargain. I dropped $5,000…”
“The good thing is I have a regular job so I am not hurting for money or need my coins to moon to pay bills… if it moons sweet, if not, at least I gave this a shot.”
“Here is my bank installment related to the loan I took to invest in crypto,” the Redditor wrote. “Still three and half years to go until I’m freed. Until then, I’m working for nothing and I’m at 85% loss. I hope it gives you a lesson.”
One of the top posts on the r/cryptocurrency website at the time of writing is details of the U.S. National Suicide Hotline and how to get in touch with people who can offer advice and resources. The number is 800-273-8255, by the way.
Reddit user u/A_Internet_Stranger, who created the post, wrote: “The hardest hit people are one of the following: Newcomers, Margin Traders, or Day-Traders (and those in Bitconnect). The vast majority of people who have held for more than 60+ days are still in green.”
Why is the bitcoin and cryptocurrency sell-off happening now?
The sell-off currently sweeping through the world of cryptocurrency has been blamed on investors, who last year piled into initial coin offerings (ICOs), often using the ethereum blockchain, bailing out.
As many hundreds of ICOs launched on the ethereum blockchain, it pushed up ether’s price and with it many other major cryptocurrencies.
Highlighting this drop off for investors, a report from analysts at ICORating found the return on investment (ROI) on ICOs in the second quarter of this year was –55.38%, down from an ROI of 49.32% in the first quarter.
This is despite an increase in both the number of ICOs and the total amount raised over the quarter.
Meanwhile, bitcoin and other cryptocurrencies rallied in July on hopes that a bitcoin-backed exchange-traded fund (ETF) would be approved in August by the U.S. Securities and Exchange Commission, a delay on the decision until September has taken the wind from investor’s sails.