Today, most cryptocurrencies lost significant dollar value. Almost all coins lost between 10% and 15% in value and some lost close to 20%. As expected, the market capitalization lost about 12%.

The reasons for this seem to be related to the simultaneous crash of the stock market, which lost about 2%. The Evergrande Group, one of the biggest Chinese real estate companies, may default on its debts and the US Federal Reserve may begin tapering its current monetary stimulus.

It is unusual to see the cryptocurrency market behaving like the stock market, however, many investors are now in both markets and, therefore, behave the same. They would go for the comfort of cash in times of uncertainty. The reality, however, is different for stocks and cryptocurrency. I predict this to be a temporary decline and the money should be returning to the crypto market soon.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.

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