Crypto Market Sentiment; More Dips Ahead?

More than a trillion dollars in crypto-market worth has vanished in the blink of an eye. Last week and into Saturday (January 22), the shocking drop that has been a hallmark of digital assets in recent weeks continued to play out, with Bitcoin losing more than 15 percent at one point. The largest digital token has lost more than half of its value since its previous high, and many other cryptocurrencies have lost just as much, if not more. Superlatives abound when it comes to the carnage: Friday’s drop resulted in the liquidation of more than $1.1 billion in crypto futures holdings, and more than $1 trillion in market value has been lost since the last peak. To put it another way, the meltdown is adding salt to an already infected wound. “Digital-currency markets in total have been challenged this month,” said Jonathan Padilla, co-founder of Snickerdoodle Labs, a blockchain company focused on data privacy. “There’s definitely some pain there.” Even seasoned bulls are beginning to wonder aloud when the battering will stop. Mike Novogratz, a well-known crypto investor, speculated on Twitter that 2017 will be the year when people realize investing is a difficult profession. However, crypto enthusiasts have an endless supply of hope, and many believe that, with Bitcoin having already spent two-thirds of the year in the red, better times are on the way. Sellers will exhaust themselves at some point, and the market may soon capitulat...