Share market volatility stepped up a notch this week, with some big falls on Wall Street, comments from RBA Governor Philip Lowe, and US interest rates taking a big jump.

The ASX had a big fall on Tuesday and was down again yesterday.

So I sat down to record some thoughts on where we are, what I’m expecting, and what I’m doing.

We hope you find them useful.

Just click on the image below to watch the video. And keep your eyes on the (long-term) prize!

Fool on!

The post Market crash: A message from our CIO appeared first on The Motley Fool Australia.

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More reading

• Fed rate rise breaks 28-year record. Will the RBA increase interest rates as aggressively?
• Appen share price rebounds 12%, topping ASX 200 gainers
• ASX 200 midday update: BHP’s NSW coal update, Link takeover on the rocks
• Westpac says consumer confidence is falling. Could this actually be good news?
• Why ASX 200 shares are charging higher following super-sized US Fed rate hike

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Global Lithium Resources Ltd (ASX: GL1) share price is rocketing on Thursday following a drilling announcement from the company.

At the time of writing, the lithium explorer’s shares are up 7.95% to $1.29 apiece.

Global Lithium targets deeper depths at Manna

In its release, Global Lithium announced that drilling contractor, Mt Magnet has mobilised to the Manna Lithium Project to commence work.

Mt Magnet will use its diamond drilling rig to target pegmatites at depths below the reverse circulation (RC) drilling program.

The 4,000-metre program will be Global Lithium’s first diamond drilling campaign at Manna since its acquisition in December 2021.

Just last month, an initial 20,000-metre RC drilling program kicked off at the project by contractor Profile Drilling Services.

Global Lithium has expanded the mobile camp at the site to house the geology team and both drilling contractors.

The results from each of the drilling campaigns will be incorporated into the updated Mineral Resource later this year. Additional metallurgical test work is being planned for Q4 2022.

If the program delivers on its potential, the Global Lithium share price could receive a much-welcomed boost.

The Manna Lithium Project is located 100 kilometres east of Kalgoorlie in the Goldfields, Western Australia. Global Lithium retains an 80% interest in the project.

What did management say?

Global Lithium head of geology, Stuart Peterson commented:

The addition of the Mt Magnet diamond drilling crew to the Manna Lithium Project will enable the Pegmatites to be targeted to a depth that has never been reached before at this project.

The drilling information we gain from this program will enable the Company to look to expand the current lithium resource for the project and provide material for further metallurgical test work.

Mt Magnet is a highly experienced drilling contractor that I have worked with before in large-scale resource drilling programs and I am confident they will deliver this program on budget and schedule.

Global Lithium share price snapshot

Despite today’s gains, the Global Lithium share price has fallen 18% in a week. This comes off the back of 7 consecutive market days of losses followed by a sell-off across the lithium sector.

However, when looking at the past 12 months, its shares are up almost 400%.

Based on today’s price, Global Lithium presides a market capitalisation of roughly $224.56 million.

The post Why is the Global Lithium share price powering ahead by 8% today? appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Global Lithium share price jumped higher today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Pilbara Minerals Ltd (ASX: PLS) share price is launching higher today despite the company’s silence.

It’s only the second session for the entire month of June so far in which the lithium producer has posted a gain. In fact, it’s currently 27% lower than it was at the end of May.

At the time of writing, the Pilbara Minerals share price is $2.16, 5.37% higher than its previous close. Earlier, it hit an intraday high of $2.21, a gain of 7.8%.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.49% right now.

Let’s take a closer look at what might be going on with the ASX lithium share on Thursday.

What’s happening with the Pilbara Minerals share price?

Stock in Pilbara Minerals is regaining some of the ground lost during its disastrous start to the month.

It’s doing so alongside its home sector – the S&P/ASX 200 Materials Index (ASX: XMJ). Right now, the sector is the ASX 200’s fourth best performer, gaining 0.97%.

And ASX lithium shares are helping to boost it higher. The materials sector is currently being led by Pilbara Minerals’ stock, with that of Liontown Resources Limited (ASX: LTR) coming in a close second. It’s up 4.93%.

Gold explorer and producer Ramelius Resources Limited (ASX: RMS) rounds out the sector’s top three performers. It’s gaining 4.15% right now.

Pilbara Minerals’ recent suffering follows from an ASX lithium sell-off event earlier this month, largely brought about by bearish sentiment on lithium from Goldman Sachs.  

But, as my colleague Brendon Lau recently reported, the future could be brighter for Pilbara Minerals than the broker seemingly expects.

Despite such positivity, the Pilbara Minerals share price is still trading 38% lower than it was at the start of 2022. Though, it is swapping hands for 60% more than it was this time last year.

The post Why is the Pilbara Minerals share price surging 5% on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most traded ASX 200 shares on Wednesday
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why is the Pilbara Minerals share price down 6% on Tuesday?
• Which ASX lithium shares are producing and which are not?
• Here are the 3 most traded ASX 200 shares on Friday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Overnight, the US Federal Reserve made its biggest interest rate rise in almost 30 years.

The central bank outraised the RBA by increasing rates by a sizeable 0.75%. This took the level of its benchmark funds rate to a range of 1.5% to 1.75%, which is the highest level since just before the COVID-19 pandemic began.

But it won’t be stopping there. The Fed stressed that it is “strongly committed to returning inflation to its 2 percent objective.”

As a result, the Federal Reserve is forecasting a benchmark rate of 3.4% by the end of the year.

Will the RBA increase interest rates as aggressively?

In light of the Fed’s overnight raise and the outlook for further increases in the coming months, investors may be wondering if the RBA will increase interest rates just as aggressively.

Well, unfortunately for borrowers, our central bank looks likely to be increasing rates at a similarly rapid rate.

According to the latest RBA Rate Indicator, which is based on cash rate futures, the market is pricing in an 87% probability of Governor Lowe and his team increasing the cash rate by 65 basis points to 1.5% at the start of next month.

But the central bank will only be warming up at that point. Cash rate futures are pointing to the RBA increasing interest rates at each meeting through to December.

At that point, the market is pricing in a cash rate of 3.895%. That’s an incredible ascent when you consider that the cash rate started the year at a lowly 0.1%. It is also almost half a percentage point ahead of what is expected in the United States.

Time will tell if the RBA increases interest rates as aggressively as expected but I wouldn’t be betting against it in the current environment. These certainly will be interesting times for the ASX 200 index, Commonwealth Bank of Australia (ASX: CBA), and the rest of the big four banks.

The post Fed rate rise breaks 28-year record. Will the RBA increase interest rates as aggressively? appeared first on The Motley Fool Australia.

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• Appen share price rebounds 12%, topping ASX 200 gainers
• ASX 200 midday update: BHP’s NSW coal update, Link takeover on the rocks
• Westpac says consumer confidence is falling. Could this actually be good news?
• Why ASX 200 shares are charging higher following super-sized US Fed rate hike
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Hawsons Iron Ltd (ASX: HIO) share price is off to the races today, up 25%.

Shares of the ASX iron ore developer and producer closed yesterday at 39 cents and are currently trading for 48 cents.

So, what’s piquing investor interest today?

Larger project output embraced

The Hawsons Iron share price is rocketing after the company updated the market on its plans for the Hawsons Iron Project in New South Wales.

The company’s Board said the Bankable Feasibility Study (BFS) for the project will now be solely on developing a 20 million tonne per annum (Mtpa) project.

The larger scope is expected to deliver better Environmental, Social and Governance (ESG) outcomes and project economics than the alternate 10 Mtpa project. Capital costs will be higher.

The Board made its decision in light of the project’s Mineral Resource upgrade to 400 million tonnes, announced on 19 October.

Commenting on the decision, Hawsons Iron chair Dave Woodall said:

The team of leading global partners and specialists we’ve engaged to complete the BFS now have the additional information required to undertake detailed engineering design and update the project’s estimated delivery timetable which we will release once completed.

Woodall added that the company still aims to complete the BFD by December 2022, with the first production from the project expected in the second half of 2024.

Also likely helping lift the Hawsons Iron share price today was its report that it had reached a non-binding Memorandum of Understanding (MOU) with Flinders Ports to co-operate on the potential development and operation of the Myponie Point Port.

Hawsons managing director Bryan Granzien said the MOU would see Flinders Ports “finance, construct, own and operate the Myponie Point Port”. This would significantly cut back the company’s own CapEx for the project.

According to Granzien:

Our decision to focus the BFS solely on development of a 20 Mtpa project and this milestone MOU with an operator of Flinders Ports’ calibre have advanced Hawsons closer toward achieving our goal of meeting demand for high-grade products so essential for decarbonising steel making…

Myponie Port is expected to be ready to start exporting Hawsons’ unique 70% Fe Hawsons Supergrade magnetite concentrate by the second half of 2024.

Hawsons Iron share price snapshot

The Hawsons Iron share price has been a stellar performer, gaining 267% over the past 12 months. To put that into some context, the All Ordinaries Index (ASX: XAO) is down 11% over that same time.

The post Here’s why the Hawsons Iron share price is rocketing 25% today appeared first on The Motley Fool Australia.

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More reading

• Is the party over for the Hawsons Iron share price?
• Here’s why the Hawsons Iron share price is climbing today
• Hawsons Iron share price slumps 9% then rebounds following project update

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Smartgroup Corporation Ltd (ASX: SIQ) share price is steamrolling its way downwards on Thursday.

An update from the employee management services company regarding one of its long-term clients has dealt a blow to shareholder sentiment today.

At the time of writing, the Smartgroup share price is 12% lower at $6.45. For comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) — of which Smartgroup is a constituent — is up 0.62%.

It’s a no from this client

After a challenging month for the Smartgroup share price, the situation has now worsened after the company’s latest announcement.

According to the release, the Department of Education and Training Victoria (DET Victoria) will not be renewing its contract with Smartgroup following a competitive tender process. Notably, DET Victoria has been a top 20 client in the past — making the loss that much more painful for the company and its shareholders.

In addition, the final contract transition data and terms are yet to be determined. However, what we do know is that Smartgroup does not expect the event to incur any material damage to revenue in CY 2022. Although, the following calendar year is expected to see a 5% reduction in revenue as a result.

Commenting on the contract loss, Smartgroup CEO Tim Looi said:

We are of course disappointed that Smartgroup was not selected to continue our relationship with DET Victoria, however, we have many strong long-term relationships with our diversified client base and continue to focus on customer experience as a key driver of those relationships.

It appears the market is focusing on whether there could be more contracts falling through. Such a concerning possibility is likely weighing on the Smartgroup share price today. Looi highlighted that there is still one renewal remaining this year, stating:

In 2021, we renewed or extended all top 20 contracts that fell due and we have now renewed or extended the majority of the top 20 contracts that fall due in 2022, with only one still remaining for renewal later in 2022.

Smartgroup share price snapshot

In the past 12 months, the Smartgroup share price has fallen by around 12%. During this time, shares in the company have been as high as $9.99 after it received a takeover bid from US-based TPG Global. However, that bid fell through after the investment firm conducted its due diligence.

Since then, Smartgroup has struggled to reclaim its former glory. In fact, the company is now trading at a 52-week low on the back of today’s news.

Based on the current Smartgroup share price, the company trades on a price-to-earnings (P/E) ratio of 14.5.

The post Why the Smartgroup share price is tumbling 12% today appeared first on The Motley Fool Australia.

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• Top ASX dividend shares to buy in June 2022

Motley Fool contributor Mitchell Lawler has positions in SMARTGROUP DEF SET. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended SMARTGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Reject Shop Ltd (ASX: TRS) share price is soaring today amid a new appointment by the company.

The retail company’s shares are currently swapping hands at $3.42, a 20% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 0.53% today.

So what news is driving the Reject Shop share price higher today?

New CEO

The Reject Shop has named Phillip Bishop as the company’s new CEO. He will commence in the role on 11 July and will receive $650,000 per year.

Bishop has 30 years of experience in retail, including senior roles at Bunnings and Office Works.

The Reject Shop noted Bishop has delivered sustained growth in these roles through his focus on the needs of customers.

The company said it is now “well positioned” with a lower cost base and talented senior leadership team.

Commenting on the news, chairman Steven Fisher said: “As the company transitions into the ‘grow’ phase of the turnaround strategy, I am confident that Phil is the right person to lead the company.”

In response, Bishop thanked the board for the appointment and outlined his growth plans for the company. He said:

In my view, there is a significant opportunity to grow The Reject Shop through better understanding its customers, continuing to evolve the product offering and continuing to expand the store network.

Capital management update

The Reject Shop share price could also be gaining on the back of the company’s capital management update.

It said it is continuing to trade consistently with management expectations and broker consensus in FY22. In financial results delivered in February, the Reject Shop did not provide a specific guidance for FY22. However, the company outlined plans to open 15 new stores and close four.

The company plans to deliver FY22 results in late August after the completion of an audit.

The Reject Shop is also looking into conducting an on-market share buyback. If the board proceeds with this, shareholders will be informed next month or in August.

Reject Shop share price snapshot

The Reject shop share price has dived 39% in the past year, while it is falling nearly 54% year to date.

For perspective, the benchmark ASX 200 has descended 10% in a year.

In the past month, the company’s shares have fallen more than 9%, while they are down 5% in the past week.

Reject shop has a market capitalisation of about $125 million based on the current share price.

The post Why is the Reject Shop share price powering ahead 20% today? appeared first on The Motley Fool Australia.

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• 2 buy-rated small cap ASX shares that this fund manager likes

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Appen Ltd (ASX: APX) share price is skyrocketing after a seven-session losing streak.

The stock is recovering alongside the broader ASX tech sector, which is also regaining lost ground on Thursday.

At the time of writing, the Appen share price is $5.70, 11.76% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.41%. The S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 2.31%.

Let’s take a closer look at what’s going on with the artificial intelligence data developer and its tech peers.

Appen share price lifts after reaching a near five-year low

The Appen share price is bouncing back from a near five-year low in yesterday’s trade.

The stock tumbled to $5.10 in intraday trade on Wednesday – the lowest it’s been since 2017.

Today, it’s the best-performing ASX 200 share. It’s beating the 6%-plus gains posted by EML Payments Ltd (ASX: EML) and Pilbara Minerals Ltd (ASX: PLS).

In the ASX 200 tech sector, Appen’s performance is shadowed by NextDC Ltd (ASX: NXT). Its stock is currently up 5.7%.

The tech index is the best performer out of all 11 ASX 200 sectors today. Looking to the broader tech sector, the S&P/ASX All Technology Index (ASX: XTX) is also up, gaining 1.9%.

This comes after the tech-heavy NASDAQ Composite (INDEXNASDAQ: .IXIC) lifted 2.5% overnight amid the United States’ biggest rate hike in decades.

The nation’s Federal Reserve lifted rates by 0.75% on Wednesday (US time). However, the Fed assured that future hikes of such magnitude would be rare and the economy could absorb the blow.

Today’s gains included, the Appen share price is nearly half of what it was at the start of 2022. It has also slipped nearly 58% since this time last year.

The post Appen share price rebounds 12%, topping ASX 200 gainers appeared first on The Motley Fool Australia.

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• ASX 200 midday update: BHP’s NSW coal update, Link takeover on the rocks
• Westpac says consumer confidence is falling. Could this actually be good news?
• Why ASX 200 shares are charging higher following super-sized US Fed rate hike
• 5 things to watch on the ASX 200 on Thursday
• The Santos share price is up 27% this year. Is it too late to buy?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd and EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Zip Co Ltd (ASX: ZIP) shares are up 6% in early afternoon trade, well outpacing the 0.54% gains posted by the All Ordinaries Index (ASX: XAO) at this same time.

Zip shares closed yesterday at 50 cents and are currently trading for 53 cents.

Today’s gain will come as welcome news to shareholders, who have watched the Zip share price crater 88% so far in 2022. And that includes the intraday lift.

Zip shares join wider BNPL rout

Zip shares aren’t the only ones getting smashed this year.

Rival ASX buy now, pay later (BNPL) share Sezzle Inc (ASX: SZL) has tumbled 89% year-to-date. And dual-listed, global payments giant Block Inc (ASX: SQ2) – which acquired Afterpay and began trading on the ASX in January – has dropped 49% since 20 January.

Zip shares were one of the top performers on the ASX during the first year of the COVID-19 pandemic. Following the market low on 20 March 2020, the Zip share price soared an eye-popping 872% over the next 11 months through to 19 February 2021.

This came as the RBA slashed interest rates and the federal government launched JobKeeper, spurring consumer spending and spiking demand for paying by instalments.

But now that rates are ratcheting higher and the government payments have dried up, a lot of those customers are finding they can’t make their repayments. Interest-free or not.

Topping that off, the industry is finding that its moats are easily breached by some of the biggest companies on Earth.

Like global technology giant Apple Inc (NASDAQ: AAPL).

Last week Apple reported it was rolling out its own BNPL service, an offering the company had hinted at for some time. Apple Pay Later comes with no interest rates and no late fees and will work for any merchants that already accept Apple Pay.

ASX BNPL shares plagued by bad debts

With international competition heating up and many customers struggling to make their repayments, investors have been selling Zip shares and those of its BNPL rivals.

Addressing the debt issues, Andrew Brown, a fund manager at East72, said (courtesy of The Age):

The bad debt experience is horrendous. The simple fact of life is this: BNPL business as a stand-alone means that you are going to attract a large number of people who are incapable of paying their money back, particularly if you don’t have robust credit checks.

Zip chair Diane Smith-Gander admitted last month that the BNPL sector had broadly been blindsided by the new environment of spiking inflation and rising interest rates:

The industry as a whole, which has seen bad debts spike, really missed that moment. And we are now going to have to dig our way out of that. In the industry there was a bit of a feeling that well these are small amounts of money, so the payback for recovery and collection activity is not the same as if you’re collecting mortgage that’s gone bad.

Grant Halverson, CEO of consultancy McLean Roche, doesn’t paint a rosy picture for the future of Zip shares and the wider industry.

According to Halverson (quoted by The Age):

With high losses and with very low margins, you will never make a profit, no matter how much growth is achieved. BNPL apps also enjoyed record-low interest rates, which is now turning and makes any path to profit impossible – basically every dollar of sales goes straight to losses.

Just how much bad debt are we talking about?

According to data from McLean Roche, the bad debt write-off for Commonwealth Bank of Australia (ASX: CBA)’s credit card accounts 180 days in arrears is 0.31%. For Zip, bad debts stand at 9.7%.

How have Zip shares been tracking longer term?

Down 93% over the past 12 months, you’d have to have bought Zip shares in April 2016 to be sitting on any gains today.

If you’d bought shares in December 2009, you’d be sitting on a 70% loss.

The post Is the ‘path to profit impossible’ for Zip shares? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Block and Zip crash amid market selloff
• Own Zip shares? CEO warned co-founder 8 months ago, ‘There are some clouds gathering on the horizon’ after Morgan Stanley meeting
• Zip share price crashes 21% to new multi-year low
• Wall Street tumbles into bear market. What does that mean for ASX 200 shares?
• Waiting to start investing in ASX shares? Today could be a brilliant time to do it

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Cryptocurrency markets are having another wild day and there have been ups and downs along the way. Values dropped early in trading on Wednesday only to recover slightly in the morning. 

As of 10:40 a.m. ET, Bitcoin (CRYPTO: BTC) had traded in a range of $22,779 to as low as $20,071 in the last 24 hours and is currently down 3.9% over that time to $21,247. Ethereum (CRYPTO: ETH) was on an even wilder ride, seeing a high of $1,266 and a low of $1,013, but it’s down 7.3% in the last 24 hours to $1,113. Dogecoin (CRYPTO: DOGE) traded as high as $0.0574 and as low as $0.0503 and is currently down 4% at $0.0541. 

So what 

There are a number of factors impacting crypto trading and most of it is bad news. The Celsius Network continues to be in trouble and users still have frozen accounts. That’s causing potential liquidations of leveraged positions and it’s unclear what the solution is. 

At the same time, crypto fund Three Arrows Capital appears to be in trouble as its leveraged positions have come under fire. The company’s founder said the firm is “working this out” but that hasn’t given much confidence to the crypto market. 

In general, leveraged investments in cryptocurrencies have backfired and traders are having trouble unwinding positions. And there’s far more risk in the system than many people thought, sometimes in places they didn’t know to look. 

Now what 

It’s hard to argue against this being a “crypto winter” in many ways and I think leverage once again is the cause of a lot of big losses. The problem in cryptocurrency is that it doesn’t have the same regulations as the banking industry to keep individual investors safe or firms from taking positions they can’t unwind. Right now, those two factors are coming to a head. 

I’m still bullish on cryptocurrency and Web3 in general as a tool for innovation and disruption in technology, but crypto becoming a trading tool with billions of dollars in leverage has led to unintended consequences. Now, the market is seeing massive losses and even retail investors don’t know when the selling will stop. 

I wouldn’t be buying the dip unless you have a very long-term time horizon and are willing to hold until this market turns around. Crypto will be back, but might be under stricter rules around the world and not every cryptocurrency will survive. For the sake of the industry’s health, this shakeout might be a good thing in the long run. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin, Ethereum, and Dogecoin dropped and popped in the last 24 hours appeared first on The Motley Fool Australia.

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More reading

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• 3 reasons Bitcoin, Ethereum and Solana just hit their lowest levels this year
• Can the upcoming merge save the Ethereum price from further destruction?
• The Ethereum price just plummeted 17%. What’s going on?
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Travis Hoium has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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