Crypto price collapse prompts tough talk and mental health support
Cryptocurrency players really should be familiar with volatility by now, but the latest price crunch has harboured some widely divergent reactions in recent days.
On Twitter and other social media there have been some rueing the day they ever heard of cryptocurrencies, while others put on brave faces, saying now is the time to buy.
Some Reddit users went a step further. Fearing for the mental health of those who may have joined the crypto investment scene at the wrong time and made substantial losses, some passed on details of support forums for suicide prevention.
While not as severe as the price crunch that followed the crypto record run in January, there are now more participants in the market and each price swing has the potential to wipe out the profits of far many more investors.
But many are choosing to brazen it out, arguing that they will not be panicked into selling and holding their assets for the inevitable rally.
Perfect storm for a rally
Alex Saunders, founder of NuggetsNews said: “The perfect storm for bitcoin rally is brewing. Shorts are near record highs, sentiment is horrible . . . The recipe for a bottom to form is almost complete.
The perfect storm for a #Bitcoin rally is brewing. #Shorts are near record highs.#Sentiment is horrible.@CNBCFuturesNow are going short.#CNBC poll shows 85% think we are going lower.
Time Cycles due for push up.
The recipe for a bottom to form is almost complete. $BTC pic.twitter.com/TSvlpbjHmB
— Alex Saunders (@AlexSaundersAU) August 15, 2018
Joseph Lubin, co-founder of Ethereum, also chose to play it tough in an interview with Bloomberg on Tuesday, saying the price collapse would be no constraint on growth of the Ethereum network.
Despite the 41% drop in the price of ether tokens in the past three weeks, Lubin said: “We build more fundamental infrastructure, we see a correction, and the potential gets even more impressive.”
He suggested that each time the market saw a correction it bounced back with more fundamental strength as the number of investors grew.
“I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem and the growth of development in the ecosystem.
“We are probably two orders of magnitude bigger as a developer community than we were eight or 10 months ago,” he said.