RATE Group | Cryptocurrencies Are In A Bear Market But Bitcoin Is Holding Steady
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Cryptocurrencies Are In A Bear Market But Bitcoin Is Holding Steady

12 Sep Cryptocurrencies Are In A Bear Market But Bitcoin Is Holding Steady

Posted at 21:37h in Bitcoin News by

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Cryptocurrency and tokens are like any market; when money flows in, the price goes up, when money flows out, the price goes down.

Right now the money flow is out of cryptocurrency and into fiat.

Ethereum is being particularly affected as all those initial coin offerings (ICOs) funded in Ethereum have to, and are right to, sell their crypto-funding and get it into fiat. Sadly, it’s hard to pay salaries in crypto and impossible to pay rent, etc. in anything but fiat.

ICO companies are not hedge funds. They must take their fiat and run. This is and will be a drag on Ethereum while crypto is in a bear market, it is a vicious circle that can only bottom when money flows back into the market sufficiently to balance the money flow out of crypto into fiat. It is anyone’s guess when and at what level this might be.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their…

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