Just hear this. CEO of cryptocurrency exchange Kraken Jesse Powell said in a recent interview: "I think ultimately consumers need to look out for themselves, look into the fundamentals of any coin and not rely on any particular exchange to protect them from market volatility"
While we all might have our own interpretation of this remark, we can agree the message is rather clear: “guys, you are alone out there, take care of yourselves the best you can.”
We know… the same rule applies with almost any investment, right? But we also know that cryptocurrencies are just not like any other investment. In fact, they are pretty unique. Not only due to their tremendous volatility, but also because they are fully unregulated.
"We make no promises about the future of any coin, things can change when you raise $1 billion in 10 minutes," Powell added when speaking with journalists at Dubai.
And he’s actually right. Gravity not only applies to the physical world. When things go too high, too fast, expect a downward correction afterwards. It’s a rule. Just take a look at what’s currently going on in stock markets. Last Friday we saw the Dow Jones adding over 300 points. How long it lasted? Well... less than two days. Make your own conclusions.
Governments remain on a conservative stance when it comes to cryptocurrencies. Not long ago, the European Supervisory Authorities for securities, banking and insurance and pensions issued a report saying current cryptomarket conditions show "clear signs of a pricing bubble."
An idea also shared by financial gurus like the Chairman and CEO of Berkshire Hathaway, Warren Buffett, who has been insisting about the crazy risks of investing in these assets.
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So… where is the most popular cryptocurrency standing right now? In the previous session, we’ve seen BTC easing bullish momentum when trying out the $9,000 mark.
In two occasions, BTC has failed to break that level and bounced back to $8,900, where it finds a comfortable support to regain buying power.
The cryptocurrency, following the example above, has correctly sharply lower in the past few months after touch a record-high $20,000 per BTC.