On this week’s episode of “Pennies: Going In Raw,” hosts Dan Knight and Mitchell Hennessey (aka Hugh Henne) dissect the most recent drop in cryptocurrency prices.
Crypto Crash: Throughout the last two weeks, popular cryptocurrencies like Bitcoin (BTC), Ethereum (CRYPTO:ETH) and Dogecoin (CRYPTO:DOGE) have dropped as much as 40%.
“Right now, there are so many people ready to buy Bitcoin sub $40,000,” Henne said.
On May 11, Bitcoin rallied to $56,755.90 and it’s now sitting at $37,618.80. Similarly, on May 11 Ethereum rose to $4,179.81 and it’s retraced to $2,365.42.Dogecoin went from around $0.51 on May 11 to $0.33 today.
“If 10-15 whales out of the 1,000 decide to sell off half of their positions, they really could take this thing [Bitcoin] down 30%,” Henne said. “Then I feel like we may get into panic mode. It’s like with stocks, everybody wants to buy the first dip, but when the second dip comes the same people that were buying the first dip are scared as shit.”
Henne said he would expect a “flip to be switched” if Bitcoin does drop below $27,000.
“I think one thing that is interesting with Bitcoin is position sizing for me,” Knight said. “I don’t spend the same amount of money that I do on stocks anywhere else. With Bitcoin, I’ll put some small-scale $150, $200 in. I’m not sure if I’d be comfortable throwing thousands of dollars in.”
Small-Cap Comeback?: The pair also got into a potential small-cap revival. Small-cap stocks have been struggling throughout the past few weeks, with