This is why is it important to diversify and have investments in other asset classes. However, most people who are invested in crypto don't understand that, and just say HODL and buy the Dip. I am a supporter of crypto, but I also have investments in forex, etfs, and equities. I put no more than 10-20 percent in crypto, made some profits, and even though my portfolio is down, it does not hurt my overall picture of investing.
It's quite clear that prices were manipulated through tether, and investors are dumping. As soon as it was announced that the USJD was going to investigate tether ( Bitfinex), a lot of dumps started to happen.
I would suggest those who are still invested in crypto to move your portfolio into a stable coin until the smoke clears ( and that is if it clears. It might not.). You have to stop your losses.
Expert traders stop their losses quickly, and move on. They are impatient with losses and patient with gains, because they understand risk management. They just don't HODL and buy the Dip.
Now that bitcoin is close to 3500, people who got in at 300.00 have to be worrying at this point, and that might be the people who are dumping, which would be a smart move. Get out with a profit and move the money into other asset classes, similar to traders moving their money into bonds during a serious stock crash to protect their earnings.
Good luck to everyone, and don't give up investing. Keep in mind Warren Buffet bought a shoe company with 400million dollars in stock, it went belly-up right after he bought it. He said that those stocks would be worth 5 billion dollars today. Trading and investing have its ups and downs, and investors lose money, but they make sure that their gains are more than their losses, and they never lose sight of risk management.