According to a Glassnode report, the Bitcoin crash has been hard on investors, and 40% of them are now underwater. This is just the latest in a string of bad news for the crypto world, which has seen several consecutive lows in recent weeks.
Wednesday morning, May 11, the news broke that Terra’s Luna (TerraUSD) cryptocurrency is down 87% in just 24 hours. Its UST stablecoin plummeted to 29 cents, but it should have been $1.
Crypto is notorious for being one of the most volatile assets globally. What was supposed to maintain a $1 peg — A “STABLECOIN” — is now the lowest it has ever been. What’s so “stable” about that?
Additionally, at the beginning of the week, Bitcoin dropped below $31,000, nearly 55% from its November peak.
Analysts at Glassnode also noticed an increase in “urgent transactions” during this most recent sell-off. Investors paid more significant costs to speed up transaction times. Over the previous week, the total worth of all on-chain transaction fees paid was 3.07 bitcoin, the highest in history.
Look, this is further proof that Bitcoin and other cryptocurrencies are not investments you can count on. The instability of crypto markets is well-documented, and investors should be wary of putting their money into something so unreliable.
What Bitcoin investors being underwater teaches about rethinking investments
If you’re thinking about investing in Bitcoin, my advice is to reconsider. To avoid becoming just another Bitcoin investor underwater, do your research and prepare yourself for possibly losing your investment.
There are much better ways to invest, make money, and grow your income. I’m talking about solid ways to invest in tangible assets that can double, triple, or 10X your wealth for the long term.
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