CZ Said This In 2019, But Newbies Are Still Shocked By Market Downturns.

Bitcoin market downturns have been routine since the coin came into existence, but some people don’t learn this.

The last few months have been a hard time for the crypto market, including Bitcoin. The top coin has lost much of its value as compared to where it was in late 2021. A lot of analysts and traders have come out to opine that the market is entering a period of “crypto winter” with extreme bearish sentiments.

The biggest downturn happened about a week ago, and Bitcoin even dropped below the $20k support over the weekend.

Now, this seems to rattle some new investors who are now worried that their investments will become nothing, despite people like Binance CEO having talked about it three whole years ago and are repeating the same words again.

In 2019, during the previous crypto winter, CZ sent out a tweet to this effect. Some, like Ki Young Ju, an analyst and CEO of leading analytic firm Crypto Quant took it seriously. Others didn’t.

It’s Still Early

According to CZ, the Bitcoin market and the blockchain industry are still in their early stages. Note that he said this during the crypto winter of 2019, when BTC had dropped to around $3k. Ki Young Ju is referring to that sentiment when BTC is around $20k.

Also, note that back in 2019, the market had already crashed, just as it has already crashed these days. Both $3k and the current $20k are considering meager prices. At this time, Bitcoin is trading at around $20.9k, up from the lows of $18k over the weekend.

Ju highlighted the wording of Binance CZ when BTC was around $3K in 2019. In 2019 CZ hinted that BTC is at the bottom and told the community that we are still very early.

CZ in 2019: “That’s exactly what I thought back in 2013, “damn, I am too late. I wish I started early like those other guys.” and I will say the same thing I heard back then. We are still early, the beginning of the beginning.”

I saw this tweet back in Feb 2019 when #Bitcoin bottomed at $3k.

Now, he's repeating the same advice for newbies. https://t.co/zN1g15MJya

— Ki Young Ju (@ki_young_ju) June 21, 2022

Now crypto quant CEO is stressing that as BTC prices are hovering around $20K, he is hearing the same advice from Binznce CZ, but newbies do not understand not acting on time.

Image source: Twitter

Is History Repeating?

Apparently, history has a way of repeating itself, and newbies have been the unluckiest victims. However, they’re not victims because of any other factors other than fear. This is clear from the current fear spreading among newbies and making them give up their stash. This has always happened to the “weak hands” during downturns.

It’s a fact that brutal downturns come with heavy FUD, and some newbies who haven’t quite understood the market dynamics get into a panic mode thinking the crypto market is going up in flames and ending forever. They sell in haste and make losses. Those who manage to hold reap profits when the bull run finally starts.

Bitcoin is not doing well, and protocols like Celsius are putting extra pressure on BTC prices.

CEO of asset management company DoubleLine Capital, Bond King Jeffery Gundlach, while talking to CNBC, has warned that he expects Bitcoin’s price might fall much more; therefore, the implosion may not be done yet. According to the investment manager, a further 50% decrease in Bitcoin’s price to $10,000 would not be surprising.

He opined that the trend in crypto was plainly not favorable, given that it had already peaked. That’s why he reminded the audience that he was here in July of last year when Bitcoin was a whopping $60,000 high. And then, the price was reduced to $30,000. After that, BTC bounced, but that bounce was short-lived, and now the top crypto is trading at $20K.

At this point, The CEO claims that he isn’t optimistic about the value of Bitcoin. Even if the price reaches $10,000, Gundlach wouldn’t be startled at all.

“The trend in crypto is clearly not positive… So I’m not bullish at $20,000 or $21,000 on Bitcoin. I wouldn’t be surprised at all if it went to $10,000.”

Current Market Situation

On Monday, the cryptocurrency sector was on edge as bitcoin fought to hold above a critical level. Investors feared that issues at large crypto firms might trigger a broader market shakeout, and industry analysts said BTC could potentially fall another 50 percent more.

The price of Bitcoin fell by about $30,000 throughout the first week of June and continued to decline until the 20th of June, when it reached its current price of just a hair over $20,000. As a direct consequence of the precipitous drop, the entire global market valuation for all cryptocurrencies has fallen below $850 billion for the first time.

According to market participants, additional price drops might have a domino effect, in which other cryptocurrency investors are obliged to sell their holdings to cover losses and satisfy margin calls.

A significant portion of the stock market has also seen a steep fall recently. The performance of emerging market equities this year has been negative by 15%. The majority of equity markets are now declining. 

Nasdaq has lost 28% of its value, and Bitcoin has lost 53% of its value so far this year and 45% of its value only since the most recent meeting of the Federal Reserve. At the time of this writing, the price of one Bitcoin is $20,535, representing a gain of around 2 percent from the 2022 low of $20,111 that was hit the previous week.

Celsius and 3AC

The cryptocurrency industry’s lousy news weeks continue as the focus has shifted to crypto lending organizations that guarantee big returns for depositing digital currency. After a business with roughly $12 billion in crypto assets under control suspended withdrawals for clients last week, there was speculation that Celsius Network was insolvent.

The biggest problem for the Bitcoin and entire crypto market is that if Celsius Network cannot stay afloat and Bitcoin price falls below $20K, there would be some Heavy Celsius Liquidations seriously affecting BTC price.

Furthermore, Three Arrows Capital (3AC) said it had sustained massive losses. 3AC spent $200 million on the failing Luna protocol, which collapsed last month. 3AC’s founders claim it has legal and financial experts. The company may sell its assets, but it’s open to being helped out.

Kenyan Students Captured For Laundering Money In BTC.

According to the Directorate of Criminal Investigations (DCI) in Kenya, a group of Kenyan students has been stealing the email of credit cards of people from other countries by using a technique called email phishing to buy Bitcoin with stolen cards.

BITCOIN THUGS ARRESTED
A notorious gang that has been hacking people’s credit cards before using them to purchase bitcoins and convert them to Kenyan currency, have been arrested in Nakuru city. The gang operating from houses in the affluent Milimani neighborhood has been on our pic.twitter.com/BNG40QpxkU

— DCI KENYA (@DCI_Kenya) June 16, 2022

After obtaining innocent people’s personal information through bogus emails, the students use the stolen credit card numbers to buy bitcoin, which they subsequently exchange for Kenyan shillings.

According to the report, Kenyatta University students Francis Maina Wambui Alias Nick, 26, and Zellic Alusa, 25, were both detained during the raid in the presence of two young girls. Both suspects go by the alias Nick.

During the arrest, the suspect’s belongings including five computers, four cellphones, two wifi devices, three hard drives, and a variety of SIM cards were found.

Although the crew targets credit cards belonging to persons residing in other countries, Kenyans have also suffered financial losses as a result of cybercrime connected to banking. In 2018, total losses were $295 million, which was an increase over 2017’s total of $210 million.

The District Attorney’s Office claims that the two college students will use the ill-gotten gains to support their extravagant way of life. According to the reports, the students also used the looted money to acquire houses and to engage in sexual activities

Following the search of an apartment in which the two individuals were doing their business, the DCI said that one of the papers that had been found was a leasehold agreement that had been signed on May 25 for a property located in Juja and valued at Sh 850,000 ($7,240).

A few days before the raid, the Kenya National Police Service launched a forensics lab to combat escalating cybercrime and cryptocurrency fraud. This is another move by Kenyan authorities to clamp down on hackers who appear unaffected by the 2018 Computer Misuse and Cyber Crimes Act, which stipulates a 2-year prison sentence and a $2,000 fine for exploiting a payment network to launder money.