The crypto market continued its recent crash today, Feb. 5, with Bitcoin falling below the key support at $70,000 and the valuation of all coins moving to $2.3 trillion from a record high of over $4.2 trillion.
Summary
- The crypto market crash accelerated on Thursday, with Bitcoin moving below $70,000.
- Nouriel Roubini, a top economist, has warned of an impending crypto apocalypse.
- On the positive side, Bitcoin and most altcoins have become highly oversold.
Roubini is ready for a crypto market apocalypse
The Bitcoin (BTC) sell-off accelerated. And Nouriel Roubini, a top economist popularly known as “Dr. Doom,” expects the top cryptocurrency and most altcoins to continue falling. Why? Not enough people use them.
Bitcoin remains in a bear market, while gold hovers near its all-time high, despite many proponents calling it a safe-haven asset.
Roubini, who accurately predicted the Global Financial Crisis, also warned that most cryptocurrencies were blockchain in name only. He said:
“95% of ‘blockchain’ monies and digital services are blockchain in name only. They are private rather than public, centralized rather than decentralized, permissioned rather than permissionless, and validated by a small group of trusted authenticators.”
Doom isn’t alone
Other popular analysts have warned about the crypto industry.
For example, Peter Schiff, a top gold bull has continued to predict that the coin will continue falling over time.
However, other crypto proponents have argued that the ongoing crypto crash is a normal part of the process, citing other crypto crashes in the past. For example, Bitcoin dropped by over 70% in 2022 as companies like Terra and FTX crashed. In a statement, Michael Novogratz said:
“I do think we are at the lower end of the range. What I would say is we have been here before. Anyone who has been in crypto for more than five years realizes that part of the ethos of this whole industry is pain.”
There are a few reasons why the crypto market may recover in the coming weeks or months. First, the Federal Reserve will likely continue cutting interest rates, which will make risky assets more attractive
Second, the Crypto Fear and Greed Index has moved to the extreme fear zone of 11. In most cases, crypto prices normally rebound when the index moves to the extreme fear zone as we saw in December last year.
Additionally, the Relative Strength Index of most coins, including Bitcoin and Ethereum, has moved to the extreme fear zone. Other oscillators, like the Stochastics have also moved to the oversold level, where rebounds normally happen.
