After maintaining upward trends in the past year, the crypto market declined drastically from May 19.
Different virtual coins witnessed wide swings last week. You probably know the high volatility in the crypto sector now. Bitcoin experienced high fluctuations, prices dropping by 19.48%. On the other hand, Ethereum, a second-leading virtual asset, declined by 36.22%.
So, what is behind the recent market crash? Well, firstly, keep in mind that the crypto market is highly volatile. Anything from breaking news to an interview with a prominent executive can cause fluctuation in the market. For instance, BTC witnessed declines after CEO Elon Musk announced that his vehicle firm would suspend BTC transactions.
Musk’s Tweeter post impacted Bitcoin value as it dropped $6 billion. Also, most crypto assets experienced the shockwave.
China contributed to the market crash after blocking most crypto activities. The nation warned its citizen to avoid speculative trading and blocked ICOs and exchanges.
Another blow in the market came when China crypto miners postponed their activities. Keep in mind that China makes up about 70% of the globe’s crypto mining.
Remember, early in January Musk’s firm invested over $1 billion in Bitcoin. Both the company and the digital coin flourished with the deal. Unfortunately, Tesla had to withdraw BTC payments due to environmental issues. Elon Musk declared that Crypto might have a promising future, but not at the cost of the environment. Tesla’s withdrawal affected the crypto market since Musk has been an icon in the cryptocurrency space.
The Current ETH and BTC Price
When writing this, Coinbase has the current BTC value at $25,874.52.
However, the digital coin improved, increasing by 4%in the past day as the crypto market struggle to recover from China and Tesla blow.
Over the past day, ETH has increased to $1,620.89, by 10.08%.
Most people enjoy that cryptocurrency is cheaper than banking options and involves no government regulations.
As much as industry analysts suggest crypto will be the future of money, China and Tesla’s decisions seem to contradict.
Crypto experts advise investors to remain calm as it is the nature of the crypto market to fluctuate.
Will the market recover? You can voice your views below.