Bitcoin Drawdown Nears 40%; Weakness Suggests Lower Prices Coming
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None of these methods is guaranteed to make money, but many people have benefited from them. Bitcoin prices roared back by mid-2024 and reached a high of more than $124,000 by October 2025. The case of Dread Pirate Roberts, who ran a marketplace to sell drugs on the dark web, is already well known. Cryptocurrencies have become a popular tool for criminals to engage in nefarious activities, including money laundering and illicit purchases.
Who is the 7000 Bitcoin guy?
That is the case for Stefan Thomas. A German software developer who rose to fame after losing access to 7,002 BTC, now worth over $220 million. His story is not just another news item but a reminder of the challenges that many people may be facing in managing digital assets in a decentralized world.
How To Buy Cryptocurrency
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7 Best Crypto Wallets of February 2026 – money.com
7 Best Crypto Wallets of February 2026.
Posted: Mon, 02 Feb 2026 08:00:00 GMT source
The Shape Of Prediction Markets To Come
These are businesses that allow you to buy or sell cryptocurrencies from other users at the current market price, similar to a stock. Many investors limit crypto to a small percentage of their portfolio. The tokens listed above have https://www.daytrading.com/iqcent shown remarkable performance and continue to evolve, yet no investment is risk-free. Whether you invest with a lump sum or use dollar-cost averaging, looking beyond short-term cryptocurrency prices is critical. Before you invest in cryptocurrency, review these core factors to reduce risk and improve decision-making.
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- One advantage of Bitcoin is that it is the most widely accepted type of crypto as a payment method in the real world, which could help support its value.
- The value of your investment may go down or up, and you may not get back the amount invested.
- Others simply provide exposure to crypto prices, such as through crypto ETFs, but you don’t actually own the underlying crypto assets.
- Securities and Exchange Commission (SEC) set rules that crypto exchanges, online brokerage firms, and other institutions that offer cryptocurrency must follow.
A well-diversified portfolio can provide a buffer against the volatility inherent in individual cryptocurrencies. In the crypto market, this means holding a mix of different cryptocurrencies rather than concentrating your funds in a single asset. By understanding these strategies, investors can make informed decisions that align with their financial goals.
Monero (xmr): Privacy-first, Fungible Digital Cash
Realized price is around $56k and the 200-week moving average is around $58k (note that these metrics climb higher every day that BTCUSD trades above them). With the exception of 2017, Bitcoin has never experienced a 40% drawdown from all-time high that didn’t extend to 50+% from ATH within 3 months (a 50% drawdown from all-time high today would place BTC at $63k). January close on Saturday evening saw Bitcoin complete 4 consecutive red monthly candles for the first time since 2018. The price action brought BTCUSD as low as $75,644 on Coinbase Saturday, drifting below the U.S. Saturday alone saw a 10% move that spurred one of the largest liquidation events in https://www.yell.com/biz/iqcent-london-11010560/ history, with more than $2 billion in long liquidations across futures trading venues. Using a 50% bonus code increases that allocation to about 202,000 tokens.
Best Crypto To Invest In: Deepsnitch Ai Offers Live Tools At Presale Pricing
Compared to traditional stocks, cryptocurrencies are extremely volatile and require investors to prepare themselves for all kinds of scenarios. In Ethridge’s opinion, investors should either focus on Bitcoin or look for a diversified cryptocurrency ETF. Ethridge said that investors should consider limiting crypto exposure to no more than 5% of their overall portfolio. Bitcoin Cash uses a proof-of-work verification system, and thus does not allow staking, although some crypto platforms allow Bitcoin Cash investors to earn passive income by depositing their tokens.
- The law sets safeguards and establishes rules for companies or vendors providing financial services using cryptocurrencies.
- In the crypto market, this means holding a mix of different cryptocurrencies rather than concentrating your funds in a single asset.
- U.S. courts ruled in July 2023 that cryptocurrencies are considered securities when purchased by institutional buyers but not by retail investors who buy them on exchanges.
- With a diversified portfolio, you’ll want to keep track of how your crypto assets are doing.
Tips For Buying And Holding Crypto Wisely
What was the first item bought with Bitcoin?
Wei Dai and Nick Szabo were also early supporters. On May 22, 2010, the first known commercial transaction using bitcoin occurred when programmer Laszlo Hanyecz bought two Papa John's pizzas for ₿10,000, in what would later be celebrated as "Bitcoin Pizza Day".
There are many ways to invest in cryptocurrency, such as a variety of crypto exchanges, apps and platforms. Many altcoins (non-Bitcoin cryptocurrencies) have significantly more limited use cases. If you’re using extra money to speculate on cryptocurrencies for fun, you may be inclined to look for small, high-volatility cryptocurrencies. This allows an investor to benefit from crypto bull markets, while limiting their potential losses during crypto downturns. It’s available in the U.S., although some crypto wallets do not allow investors to withdraw TRON funds unless they have enough to cover the network’s relatively high fees.
How much would I have if I invested $10,000 in Bitcoin 5 years ago?
Bitcoin has been a high-performing asset
Despite extreme volatility, Bitcoin's price has skyrocketed 1,060% in the past five years as I write this. This monster gain would've turned a $10,000 initial capital outlay in October 2020 to a whopping $115,700 on Oct.
All prior bear market bottoms have seen a convergence of these metrics closer to 50-50, though 2015 and 2018 reached greater than 60% in loss. Comparing this data (URPD) as of Feb. 1, 2026 to the date of the prior all-time high provides insight as to the origin of selling pressure since Oct. 6, 2025. Observing Bitcoin supply based on when the coins last moved onchain, a gap in ownership is visible in the $70-80k range. January 30 and 31 price action sent BTCUSD below the average ETF cost basis ($84k), based on prices during inflows, for since Summer 2024. Cumulative inflows peaked at $62.2 billion in early October 2025 and are now down -12.4% from their all-time high. A more recent look (2018-present) in linear scale shows the convergence of realized price and the 200-week moving average, which both sit near each other in the high $50k range.
For example, you might buy some blue-chip crypto like Bitcoin and Ether, along with some up-and-coming ones. In general, though, these types of platforms tend to offer straightforward user interfaces resembling stock trading. These tend to have broad support for many different types of iqcent reviews crypto wallets, such as MetaMask, Best Wallet, or Trust Wallet. Also, consider factors like enterprise/institutional adoption and ecosystem growth, which could support higher demand and drive up prices. Consider the problem a crypto asset solves to see if you think it has potential to grow.
- Cryptocurrency investments can see impressive growth in short periods, but it’s essential to have a thorough understanding of how a project works before risking any capital.
- By doing so, investors can better position themselves to benefit from upward trends while avoiding potential pitfalls.
- Security is key with crypto, as the industry is generally less regulated than many other areas of finance.
- DCA is especially useful for those who may not have large sums to invest all at once.
Chainlink continues to expand its role as the leading decentralized oracle network, connecting blockchain applications with real-world data. Although some institutional capital has rotated out of SOL and into XRP, this dip could offer a buying opportunity for long-term investors looking for a better entry point. Although it’s impossible to predict the direction of such a speculative asset, investors who think Bitcoin will eventually recover from its recent dip have history on their side. Many of these investors have been waiting for an opportunity to buy Bitcoin at a discount, so I expect lots of dip-buying activity. I’m not necessarily predicting that outcome because Bitcoin continues to attract hordes of new investors, including many institutions, thanks to the widespread availability of Bitcoin exchange-traded funds (ETFs). That means it could trade as low as $25,000 per coin in the near future, so investors need to have a stomach for volatility to ride this roller coaster.
