Cryptocurrency markets never close. But perhaps some investors wish they would as the market plumbs new depths, having lost more than $2 trillion in value in a matter of months.
Market heavyweight Bitcoin has dipped below $20,000 and 72 per cent lower than its all-time high in November last year, as of 3pm UAE time on Tuesday. Ethereum, the second-most-valuable digital coin, has now lost 78 per cent of its value from its high in November.
Why Bitcoin crashed
The dreaded FUD is here.
FUD, the acronym for “fear, uncertainty and doubt” used as shorthand by cryptocurrency enthusiasts to dismiss negative information, is seeping into investor sentiment, analysts say.
This is on the back of a 40-year high inflation in the US, rising interest rates in many parts of the world, recession fears and a steady drumbeat of reports telling of widespread theft and fraud in cryptocurrency space.
These macro issues are joined by micro issues unique to cryptocurrency markets, Nameer Khan, chairman of the Mena FinTech Association, told The National.
“Investors have not recovered from the Luna debacle,” Mr Khan said, referring to the collapse of the stable coin when it unpegged from the US dollar, wiping out more than $17bn in cryptocurrency value in May.
The sell-off has been made worse by two of the biggest platforms, crypto lender Celsius Network and exchange Binance, curtailing trading activity, only adding to the fear, uncertainty and doubt.
As the market plunged, Celsius froze withdrawals last month and more recently has been battling insolvency. Bloomberg reported it has started paying off its debts to free up its collateral placed in decentralised-finance applications.
Other crypto firms like Voyager Digital and Three Arrows Capital recently filed for bankruptcy.
Mr Khan said all of this raises the importance of regulating the cryptocurrency space, but for now, there are very limited controls in place to protect investors from exchanges acting how they want or technical issues getting in the way of free trade.
What happened to Ethereum?
Despite recent promises from Ethereum's founder that it is approaching a major milestone to become less energy-intensive and more environmentally friendly, the sell-off has touched the market's second biggest digital token as well.
Ethereum tokens are secured by a global network of computers called miners that process and verify transactions, similar to how Bitcoin works. But Ethereum has a project in motion to do away with mining, transitioning to a way of securing Ethereum through “proof of stake” which promises to use much less energy.
While cryptocurrency believers are encouraging investors to buy into the dip before this transition, the alt-coin is facing the same shaky market dynamics as any other asset.
Will the cryptocurrency crash continue?
For the first time since February 2021, the value of all digital coins fell below $1 trillion in late June and have remained at that level since. Some analysts are now predicting this sharp decline marks the start of a “crypto winter”, not seen since 2018 when Bitcoin dropped 80 per cent and then took more than a year to find another peak.
Market factors are not encouraging that this will be a short-term pinch. New US inflation figures show that prices still have room to increase, the S&P 500 has entered bear territory and tanking tech stocks are all encroaching on cryptocurrencies, Bloomberg reported.
“If one looks at previous bear markets, Bitcoin has declined around 80 per cent-plus normally, with alt-coins typically doing 90 per cent-plus,” Vijay Ayyar, vice president of corporate development and international at cryptocurrency platform Luno, told Bloomberg.
“If that remains the case, we could see much lower Bitcoin prices over the next month or two.”
More from Neighbourhood Watch:
Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
MATCH INFO
Uefa Nations League
League A, Group 4
Spain v England, 10.45pm (UAE)
Essentials
The flights
Whether you trek after mountain gorillas in Rwanda, Uganda or the Congo, the most convenient international airport is in Rwanda’s capital city, Kigali. There are direct flights from Dubai a couple of days a week with RwandAir. Otherwise, an indirect route is available via Nairobi with Kenya Airways. Flydubai flies to Kinshasa in the Democratic Republic of Congo, via Entebbe in Uganda. Expect to pay from US$350 (Dh1,286) return, including taxes.
The tours
Superb ape-watching tours that take in all three gorilla countries mentioned above are run by Natural World Safaris. In September, the company will be operating a unique Ugandan ape safari guided by well-known primatologist Ben Garrod.
In the Democratic Republic of Congo, local operator Kivu Travel can organise pretty much any kind of safari throughout the Virunga National Park and elsewhere in eastern Congo.
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
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COMPANY%20PROFILE
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Sri Lanka Test squad:
Dimuth Karunaratne (stand-in captain), Niroshan Dickwella (vice captain), Lahiru Thirimanne, Kaushal Silva, Kusal Mendis, Kusal Janith Perera, Milinda Siriwardana, Dhananjaya de Silva, Oshada Fernando, Angelo Perera, Suranga Lakmal, Kasun Rajitha, Vishwa Fernando, Chamika Karunaratne, Mohamed Shiraz, Lakshan Sandakan and Lasith Embuldeniya.
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Januzaj's club record
Manchester United 50 appearances, 5 goals
Borussia Dortmund (loan) 6 appearances, 0 goals
Sunderland (loan) 25 appearances, 0 goals
Scoreline
Al Wasl 1 (Caio Canedo 90 1')
Al Ain 2 (Ismail Ahmed 3', Marcus Berg 50')
Red cards: Ismail Ahmed (Al Ain) 77'
Nancy 9 (Hassa Beek)
Nancy Ajram
(In2Musica)
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Three ways to get a gratitude glow
By committing to at least one of these daily, you can bring more gratitude into your life, says Ong.
- During your morning skincare routine, name five things you are thankful for about yourself.
- As you finish your skincare routine, look yourself in the eye and speak an affirmation, such as: “I am grateful for every part of me, including my ability to take care of my skin.”
- In the evening, take some deep breaths, notice how your skin feels, and listen for what your skin is grateful for.
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In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Global state-owned investor ranking by size
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UAE
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Japan
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Norway
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Indoor cricket in a nutshell
Indoor Cricket World Cup - Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
The currency conundrum
Russ Mould, investment director at online trading platform AJ Bell, says almost every major currency has challenges right now. “The US has a huge budget deficit, the euro faces political friction and poor growth, sterling is bogged down by Brexit, China’s renminbi is hit by debt fears while slowing Chinese growth is hurting commodity exporters like Australia and Canada.”
Most countries now actively want a weak currency to make their exports more competitive. “China seems happy to let the renminbi drift lower, the Swiss are still running quantitative easing at full tilt and central bankers everywhere are actively talking down their currencies or offering only limited support," says Mr Mould.
This is a race to the bottom, and everybody wants to be a winner.
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Results
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