With the blink of an eye, more than $1 trillion in cryptocurrency market value has evaporated.
The jarring downturn that has been a hallmark of digital assets in recent weeks continued to play out at the weekend, with Bitcoin at one point losing more than 15 per cent during that stretch.
The coin, which is the largest digital token, has dropped more than 50 per cent from a recent peak and many other cryptocurrencies have lost just as much, if not more.
The carnage superlatives have been easy to come by: last Friday’s decline led to the liquidation of more than $1.1 billion in crypto futures positions and, overall, more than $1tn in market value has been destroyed since the last peak. In other words, the meltdown is pouring salt on an already-deep wound.
“Digital currency markets in total have been challenged this month,” said Jonathan Padilla, co-founder of Snickerdoodle Labs, a blockchain company focused on data privacy. “There is definitely some pain there.”
Even long-time bulls are starting to wonder out loud at what point the battering might end. Famed cryptocurrency investor Mike Novogratz mused on Twitter that “this will be a year where people realise being an investor is a difficult job”.
However, cryptocurrency fans have an infinite supply of optimism and many are confident that with Bitcoin already spending two thirds of the year in the red, better times could come soon.
At some point, sellers will become exhausted and there could be some capitulation in the market soon, said Matt Maley, chief market strategist for Miller Tabak + Co.
“When that happens, the institutions will come back in a meaningful way,” he said. “Once the asset class becomes more washed out, they will have a lot more confidence to come back in and buy them. They know that cryptos are not going away, so they will have to move back into them before long.”
The news cycle has been relentless. Regulators from Russia, the UK, Singapore and Spain all announced interventions that could undermine cryptocurrency companies looking to grow in those regions, while tightening US monetary policy left traders expecting several interest rate increases this year.
Meanwhile, US President Joe Biden's administration is preparing to release an initial government-wide strategy for digital assets as soon as next month, with federal agencies expected to assess the risks and opportunities that they pose, according to sources.
That weighed on Bitcoin enough to send it to within a whisker of $34,000 on Saturday.
Bitcoin’s decline since its November high has wiped out about $600bn. More than $1tn has been lost from the aggregate cryptocurrency market.
While there have been much larger percentage drawdowns for both Bitcoin and the aggregate market, this marks the second-largest decline in dollar terms for both, according to a Friday note from Bespoke Investment Group. The largest occurred last summer, when a decline that peaked at the end of July wiped out $646bn for Bitcoin.
About 290,000 traders had their positions closed over the 24 hours through to Friday evening in New York, with liquidations totalling more than $1.1bn, according to data from Coinglass.
It remains to be seen if Bitcoin’s tumble below the psychological level of $40,000 will serve as an inflection point. Cryptocurrency proponents say heavy liquidations often serve to cut out the froth in easy-win asset speculation, helping to solidify new bottoms in the market.
“Fear and unease among investors is palpable,” said Antoni Trenchev, managing partner at Nexo. “If we see a bigger sell-off in equities, expect the Fed to verbally intervene to calm nerves and that is when Bitcoin and other cryptos will bounce.”
As the dust settles, key technical indicators show things could be about to look up for Bitcoin. The fall in the cryptocurrency’s price on Friday triggered a drop below the lower band of its trading envelope.
Traditionally, this has been a sign that the sell-off might be overdone and a reversion to the mean is in play. However, Saturday’s nudge lower suggests the bears remain in charge.
“For now, Bitcoin is up against the wall after falling below $40,000. A swift bounce above that key technical and psychological level can’t be ruled out,” said Mr Trenchev.
“Failing a quick reversal, I am not excluding Bitcoin retests $30,000 before the Fed changes tack, but that ought to be the bottom, at least in the midterm. And from there, I think we can have a nice leg up.”
Bitcoin has been trading largely in tandem with the Nasdaq 100, whose members include high-growth technology stocks that have been dinged during this year’s sell-off.
That makes sense to Art Hogan, chief market strategist at National Securities, who said that it is useful to think of cryptocurrencies as living in the same space as other speculative sectors, including special-purpose acquisition companies (Spacs) and electric-vehicle makers.
“When we are in an environment where all of those riskier assets are selling off, crypto is going to find itself doing the same,” Mr Hogan said.
“When the Nasdaq 100 or any of the other more speculative, rapid-growth, momentum-type asset classes start to gain some traction, so will cryptocurrencies.”
About Krews
Founder: Ahmed Al Qubaisi
Based: Abu Dhabi
Founded: January 2019
Number of employees: 10
Sector: Technology/Social media
Funding to date: Estimated $300,000 from Hub71 in-kind support
Fitness problems in men's tennis
Andy Murray - hip
Novak Djokovic - elbow
Roger Federer - back
Stan Wawrinka - knee
Kei Nishikori - wrist
Marin Cilic - adductor
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Global state-owned investor ranking by size
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Norway
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UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
if you go
The flights
Flydubai offers three daily direct flights to Sarajevo and, from June, a daily flight from Thessaloniki from Dubai. A return flight costs from Dhs1,905 including taxes.
The trip
The Travel Scientists are the organisers of the Balkan Ride and several other rallies around the world. The 2018 running of this particular adventure will take place from August 3-11, once again starting in Sarajevo and ending a week later in Thessaloniki. If you’re driving your own vehicle, then entry start from €880 (Dhs 3,900) per person including all accommodation along the route. Contact the Travel Scientists if you wish to hire one of their vehicles.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
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%3Cp%3E%3Cstrong%3EUAE%20fixtures%20%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMonday%2C%20June%2019%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ESri%20Lanka%20v%20UAE%2C%20Queen%E2%80%99s%20Sports%20Club%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EWednesday%2C%20June%2021%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EOman%20v%20UAE%2C%20Bulawayo%20Athletic%20Club%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFriday%2C%20June%2023%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EScotland%20v%20UAE%2C%20Bulawayo%20Athletic%20Club%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ETuesday%2C%20June%2027%20%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EIreland%20v%20UAE%2C%20Bulawayo%20Athletic%20Club%3C%2Fp%3E%0A
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
The biog
Fast facts on Neil Armstrong’s personal life:
- Armstrong was born on August 5, 1930, in Wapakoneta, Ohio
- He earned his private pilot’s license when he was 16 – he could fly before he could drive
- There was tragedy in his married life: Neil and Janet Armstrong’s daughter Karen died at the age of two in 1962 after suffering a brain tumour. She was the couple’s only daughter. Their two sons, Rick and Mark, consulted on the film
- After Armstrong departed Nasa, he bought a farm in the town of Lebanon, Ohio, in 1971 – its airstrip allowed him to tap back into his love of flying
- In 1994, Janet divorced Neil after 38 years of marriage. Two years earlier, Neil met Carol Knight, who became his second wife in 1994
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
UNpaid bills:
Countries with largest unpaid bill for UN budget in 2019
USA – $1.055 billion
Brazil – $143 million
Argentina – $52 million
Mexico – $36 million
Iran – $27 million
Israel – $18 million
Venezuela – $17 million
Korea – $10 million
Countries with largest unpaid bill for UN peacekeeping operations in 2019
USA – $2.38 billion
Brazil – $287 million
Spain – $110 million
France – $103 million
Ukraine – $100 million
Tour de France
When: July 7-29
UAE Team Emirates:
Dan Martin, Alexander Kristoff, Darwin Atapuma, Marco Marcato, Kristijan Durasek, Oliviero Troia, Roberto Ferrari and Rory Sutherland
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
The specs: 2018 BMW X2 and X3
Price, as tested: Dh255,150 (X2); Dh383,250 (X3)
Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)
Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)
Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)
Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)
Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)
Major matches on Manic Monday
Andy Murray (GBR) v Benoit Paire (FRA)
Grigor Dimitrov (BGR) v Roger Federer (SUI)
Rafael Nadal (ESP) v Gilles Muller (LUX)
Adrian Mannarino (FRA) Novak Djokovic (SRB)
THE BIG MATCH
Arsenal v Manchester City,
Sunday, Emirates Stadium, 6.30pm
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%3Cp%3EAuthor%3A%20Charlotte%20Lydia%20Riley%3Cbr%3EPublisher%3A%20Bodley%20Head%3Cbr%3EPages%3A%20384%3C%2Fp%3E%0A
Messi at the Copa America
2007 – lost 3-0 to Brazil in the final
2011 – lost to Uruguay on penalties in the quarter-finals
2015 – lost to Chile on penalties in the final
2016 – lost to Chile on penalties in the final
