- By Zoe Kleinman
- Technology editor
Di first rule of writing for Bitcoin be say no write about Bitcoin.
Di tori of di world’s most popular cryptocurrency dey run fast fast and dia fans go soon comot to tell you say you don tok rubbish.
But we must still write about am, because di last 24 hours don dey catastrophic for di cryptocurrency, even with di kain rep Bitcoin get.
I go focus for Bitcoin hia but if you be crypto follower, you go no say yawa don gas for di whole market.
Wetin dey happun?
As I dey write dis, Bitcoin dey trade for $21, 974 (£18,000). E do fall by 25% for di last five days alone, enta di lowest e don ever be for 18 months. Di highest of $70,000 wey e reach for November be like anoda life.
Di charts all dey red and dem dem dey face only one direction, dat na down.
Sabi pipo say na because of di wider global climate. No be just for crypto wey tins no dey look fine.
Recession dey domot, inflation just dey fly, interest rates dey rise and living costs dey bite pipo bum-bum. Di stock markets too dey shake like dem no stand well, as di US S&P don turn bear market nau (down 20% from dia recent high).
Because of all dis, big investors dey hold dia money for chest nau. And plenti ordinary investors, wey no be rich hedge fund owners or corporations, wey just be pipo like you and me – no get plenti money to invest for anytin, full stop.
For plenti pipo, investment for sometin wey dey risky and unpredictable like cryptocurrency be like risk wey too big for times like dis.
E no dey regulated and financial authorities no dey protect am so if you carry your life savings to invest and im come lose value or you no fit enta your crypto wallet, your money don go be dat.
Last month, saw not too popular but still ogbonge coins collapse – and dis come shake pipo confidence for di market completely.
Because of dat, more pipo don decide to dey sell dia coins.
Di more pipo sell, di less Bitcoin dey worth, because na how e dey work, di value of di coin dey hooked with how much pipo want am, Dis come get cyclic effect, more pipo go sell because di value dey drop and na so e go continue.
Unlike oda traditional assets, Bitcoin no get any underlying tin, stream of income or business wey dey back am, na so FT markets editor Katie Martin tok.
She say, “di price na only wetin pipo wan buy am from you for”.
Why right now?
So dat na di hard backdrop for Bitcoin and then for di last 24 hours, dis tins come happun:
- Binance, wy be di largest crypto exchange for world (na wia dem dey buy and sell crypto) pause all Bitcoin withdrawals for some hours. Dem say na sake of “stuck transaction”, biut no be evrione believe am.
- Di crypto lender Celsius also do di same tin but dia own reasons na “extreme market conditions” instead of just technical wahala. Now di Coinbase exchange say dem dey sack 18% of dia staff sake of wetin dem call di “crypto winter”.
- Investors wey don fear don start to dey sell off more Bitcoin.
Di first two kasala cause panic. Imagine you no fit comot money from your bank or you hear say odas no fit comot money. You go go di nearest ATM sharp-sharp and dis one too go cause more kasala and fear.
Wetin fit turn things around?
Las-las, to fit stabilize am, pipo wey get Bitcoin need to hold and and odas need to start to buy again. Dis don happun before.
Crypto fans go tell you say, now na di best time to buy, sake of say, e dey cheap, and then siddon watch am go up again. Na so e dey always work.
One of dem bin tweet me before sat “di pump dey always happun”.
Di tori of pipo wey don “get rich quick” and all di high profile celebrity endorsement go attract new money.
Elon Musk don tweet well-well about im love for crypto, and how im electric car company Tesla invest $1.5bn for Bitcoin last year.
But investment advisers say make you do am with caution.
State Street Advisors managing director Altaff Kassam tok say, “honestly, na place wia only di brave suppose chook leg put”.
And as we dey tok brave, Hollywood actor, Matt Damon bin show for one crypto ad wey come with slogan “Fortune favours the brave” for October 2021. E play for di Super Bowl and pipo don watch am 28 million times for Twitter and YouTube.
But, di “brave” wey buy bitcoin dat time no go feel like dem don collect any “favours”, as Bitcoin dey worth three times more dat time than today.