Cryptos Crushed: And When Bitcoin Catches a Cold, the Altcoins Catch Pneumonia

Cryptocurrencies repeat their recent pattern. When Bitcoin drops, the Altcoins get smashed.

In the short while it took to finish this article (about one hour), all the cryptos were smashed. And when Bitcoin catches a cold, the Altcoins catch Pneumonia.

This was my lead chart right as I was about ready to post this piece.

Bitcoin is down again today, allegedly on news from Goldman Sachs. It does not matter what the news is really, the pattern remains the same.

This is my captured screen shot about ban hour ago. I post an update below.

The lone exception to the general rule "When Bitcoin catches a cold, the Altcoins catch Pneumonia" is Tether.

But Tether is pegged to the US dollar, one for one. It is merely a trading vehicle to swap in and out of other cryptos.

Many suspect the money in Tether is really not there. Fraud accusations float repeatedly and Tether has not had a believable audit.

Investing.Com lists 2222 cryptos. I point that out because anything in the top 20 is "seemingly" very high up on the list.


Take a gander at VeChain, currently in spot 17 (oops now 18 in the time it took to pull up the following chart).

Last week VeChain had an amazing rally. If you think you can spot that on a chart, you are mistaken.

13/01/2018 is January 13. Investing needs to let people pick a date order preference or default to where someone is viewing, or both (ideally let the user pick).

To me, what makes most sense is YYYY-MM-DD. Traditional US is month first while Europe is day first.

That aside, note that VeChain hit $8.07 on January 13, this year. It is currently sitting at $0.016 (about a penny and a half).

That's a mere 99.8% decline, this year, despite at least one 100% rally. Out of curiosity let's check.

If you bought anywhere close to the top, or even 75% from the top you now have a near total loss despite a 200% rally.

And that is a top-20 Altcoin.

Update - All Cryptos Smashed

In the time it took to write this post and create charts (about an hour). Bitcoin was crushed.

But "Black Diamond" at number 24 is up 50% today, as I currently type.

So, hey, not to worry. There is no bubble.

As we all know, hash rates are soaring, and the hash rate predicts price.

If you believe that nonsense, please consider Investigating Claims Regarding the Bitcoin Hash Rate: Fact vs. Fantasy.

Mike "Mish" Shedlock

Comments (11)
No. 1-8

Every crypto currency will have their 15 minutes of fame. And then fade to oblivion.

Say what you want - At least you can sell a $1,000,000,000,000 Zimbabwean bill for about $50 USD TODAY.


Is the crypto utopia still viable for Puerto Rico ? damn they may have to feed at the public federal trough .


Cryptos are all essentially worthless, even bitcoin...


You forgot to mention Bitcoin rallied 25% in the weeks prior to getting "crushed". It's still 6 or 7% higher than the August lows.


Although not directly related; 100% of all ICO failed in 2017. Not a single ICO succeeded. Now ICO and Crypto are not the same, but it speaks volume for the sector's main problem -- credibility to create value. Still my guess is that this is just a good reset for the entire concept of ccryptocurrencies


Math says that 100% of bubbles burst and deflate.

Cryptos are like tulips.


Hi Mish, Post bubble, isn't there any residual value? I'd still consider buying some Ether if it goes sub 100 $ for example. Do you strongly disagree? Thanks


Mish, the Perth mint is working on a gold backed cryptocurrency. Can you tell us when it will be available and what you think about it? I think it is great to have something based on a hard asset and not investor fervor.