- A death cross is when the short-term average price of a coin drops below its long-term average.
- A death cross could lead to the failure of most of the world’s
NFT platforms. - The industry usually measures death cross in the 50-day and 200-day averages.
According to Coinmarketcap, the prices of some of the top $4 dropped by well over 10% over the past seven days. As of 1pm IST on June 21,
One of the biggest warnings came from Fred Ehrsam, co-founder of the world’s largest
Ehrsam $4 investors that this could mean that most crypto assets “won’t work” and 90 percent of all non-fungible tokens (NFTs) will fail in three to five years.
Not just Ehrsam, over the weekend, the man who inspired the movie ‘The Big Short’ also $4 that casual investors buying cryptocurrencies — and meme stocks like Gamestop,
"All hype/speculation is doing, is drawing in retail before the mother of all crashes. #FOMO Parabolas don’t resolve sideways; When crypto falls from trillions, or meme stocks fall from tens of billions,
That said, while Burry and Ehsram’s words certainly hold weight among investors, it seems the $4 community may also be at odds about which way to go.
When popular crypto influencer Plan B tweeted about the death cross, some pointed out that this isn’t the first time the industry has witnessed the phenomenon. “There have been 6 past death crosses in bitcoin's lifetime. 4 have resulted in enormous downside. The two that didn't lead to a downtrend were towards the end of a bear market, not after a full blown bull run. Check your bias wisely,” wrote one user in reply to Plan B’s $4.
Bitcoin’s fall over last one week
While the tweet in support of the industry is clearly from a fan, it may have a point. Ups and downs in the crypto industry aren’t new, and for what it’s worth, this drop pales in comparison to the nearly 50% drop the top currencies registered during late April-early May.
Industry experts have also been expecting a market correction recently, this could just be the market returning to a normal of sorts, after nearly a year-long bull run.
“For those who are aggressive traders, any break of 30k should lead down to 20-25k and that should be a better area to consider buying dips for a bounce,” Mark Newton, founder of Newton Advisors $4 Coindesk.