Crypto is as crypto does: Risk profiles differ, invest accordingly
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AS those who follow the cryptocurrency market might have noticed, a "flash crash" happened over a recent weekend, on Dec 4. Bitcoin in particular plunged by more than 20 per cent to a low near US$43,000, while ethereum lost more than 16 per cent to hit prices as low as US$3,500. Such volatility is not rare, and investing into crypto means suffering heart attack-triggering events like this often.
There will always be speculation for the reasons behind dives like this. Some guessed that it was due to uncertainty in the stock market, perhaps triggered by Evergrande's imminent default. Or the outbreak of the Omicron virus sparking fear amongst investors in high-risk asset classes.
What's clear is that crypto is not for the faint-hearted. Fear easily drives down prices quickly without any rational reason. Thus, such a phenomenal flash crash is typical.
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