This is one hell of a ride from cryptocurrency investors since last week, a series of events have definitely triggered a chain reaction in cryptocurrency markets making investor loses Billions of Dollars…
Yes, Billions of dollars have been Vanished in to thin Air…
Elon Musk has definitely played a major role, to trigger this current crash by stating that Tesla will not be accepting Bitcoin as a mode of payment for purchases, siting the environmental reasons as Bitcoin Mining requires a large amount of processing power.
With a large group of supporters and social media following that Musk has, it’s no wonder that there would be a slump in the price of Bitcoin, leading to the fall of other Altcoins. The point to be noted is that tweets from the same Musk have made Bitcoin and other altcoins prices soaring, having one of its longest bull runs!! Aftermath from Mr. Musk is that Telsa hasn’t sold its Bitcoin holdings else situation would be a little more difficult for an investor who has joined the wagon during this bull run
Final nail in the coffin is done by China, after barring the financial institutions to provide any services to their customer involving cryptocurrencies. Since Banks and Fintech’s are barred to provide any further services in facilitating the transactions, it obvious that customer will be more inclined to withdraw or materialize their cryptos in to local currencies.
The more the selling pressure, the more would be the dip in the price of Cryptocurrencies. While the selling pressure was so high that there was a dip amounting to 40% in Bitcoin price and other major cryptos have lost their value even by 50% which has eradicated billions of dollars from the market and investors lose a lot of money…
What would be the Future then?
Crypto space always has had a bumpy ride with a lot of volatilities and uncertainties, nevertheless the surprises in terms of returns. Cryptos have provided a return that outweighs any other investment class, and at the same time, certain dead-drops have eradicated investors’ wealth too.
In our view, this can be a pullback to cryptos for a while eventually catching up to the speed as they were earlier, this has happened in the past as well. Apart from Musk and China, other major reasons for this drop might be due to correction of the market owing to the very very long bull run, and the market needed to be corrected if not now, in the future eventually. This will become an interesting entry point for those who want to try their luck into cryptos and an exit point for those who want to realize their investments.
Either way, the situation has become more interesting than ever, as more public attraction is being built around cryptos and quite a few numbers are entities are entering into the crypto for investment products. Cryptos are going to stay, so invest wisely by doing research, as there will be lot of fluctuations in the prices even in the span of minutes