Everything you should know about the Bitcoin carnage that happened this week
The fluctuations in the value of bitcoins and other cryptocurrencies are prevalent thing because of their volatile nature. But this week has been quite different for the bitcoins as it has gone through a sudden crash, which has been recognized as a massive fall in its value for the first time in 2021. The market of the entire cryptocurrency market was noticed at $2.2 trillion on 16th May, which shed to just $1 trillion after one week. This means that each and every digital currency is affected and going through its lowest points this week. The researchers claimed that almost billions of dollars of loss had been suffered by investors all over the world.
Investors had not faced such a phase in the crypto world yet. The bittrader is top rated exchange platform that offers a consistent service.
The investors went into a state of fear and uncertainty after observing the value of digital currencies in their value which was earlier floating at the highest levels, and within a week, it just fell to the significantly lower level. The researchers revealed that it was a much-required market correction as, from the long years, this type of fluctuation has not happened in the market. The end result of the fall in the value not only resulted in losses but had also disappointed the investors because they will not be able to manage their bitcoins due to downtime of exchange platforms. There was an almost 400% rise in the traffic which is why a platform like Wazirx and Coin DCX got crashed within a few minutes.
The main shock that occurred to the crypto market was done by Tesla’s CEO when he kicked off the bitcoins by announcing no acceptance of bitcoin payment from anyone who wishes to buy a Tesla car. This is because bitcoin transactions require insane energy consumption, which is a risk to the environment and result in a shortage of fossil fuels. Yes, it is an actual thing that mining bitcoin requires an excessive consumption of energy, but why he was suddenly awakened about announcing this. The value of bitcoin before his announcement was approx $55,000, which fell to $46,000 within a couple of hours.
A considerable number of people were considering it an unjustified announcement which is the reason they launched the community based on crypto named $STOPELON. The objective of establishing this community was to overtake Tesla and preventing Elon Musk from taking such moves which can easily manipulate the crypto market. It is at the low level of $0.00012134 at the present time but catching the excellent attention of people at the global level. The investors who had entered the bitcoins investments a few months ago are mainly suffering a shock because they have lost huge money, which was totally unexpected by them.
After few days, the situation was getting normal as recovery was observed in the value of bitcoins until one more announcement took place. It was an announcement at the global level where China mentioned the ban of any service related to cryptocurrencies by some of the financial entities of China. Even it is in the knowledge of everyone that China is the biggest hub of crypto mining and a large number of the trader of the word occurs in various regions of China.
The statement by some of the experts and crypto analysts of the world mentioned that the fall in the value of bitcoin was necessary and on the way after the action taken by China. Bitcoin is a top-class digital currency that is the best alternative as a store of value for the long term. The price corrections are the everyday things in terms of assets, and soon, bitcoin will also come to the average value. As the amarket was going through an all-time high, there was a requirement of such shakedown in the market, and it has finally taken place. Now only the intelligent investors will sustain their investment as all other investors will step out from the world of the crypto world.
After noticing the current status, it has been confirmed that the entire is going through the red phase, and an average fall of 30% has been faced by almost every digital currency in the market. It will take some time, but in the end, the market will again come into the green phase, so investors so relax and have some patience.
