Bitcoin is the most popular decentralized cryptocurrency, which is based on blockchain technology. It is already considered to be one of the most popular cryptocurrencies, but its popularity has increased a lot in the past few weeks, but it has been for all the wrong reasons. The month of may has been one of the worse months in the history of cryptocurrency as the crypto market faced one of the biggest crashes in it.
You can use the cryptocurrency markets to make quick money with bitcoin trading. Bitcoin’s price dropped suddenly after some tweets were posted by Elon Musk. Despite all the efforts for recovery, bitcoin has been going down continuously due to varying reasons. If you want to stay updated with the latest fluctuations in the crypto market, you can read them below.
Price of bitcoin recovered after the massive crash
26th May brought some news for the crypto investors as the bitcoin price moved up and reached $40000. It is its highest price throughout the week which gave some relief to the investors, and volatility got into control to some extent. The rate of bitcoin grew over 6% and reached $40904. Bitcoin is the largest cryptocurrency, and any fluctuation in its price surely affect the prices of other cryptocurrencies in the market.
So, as the cost of bitcoin grew, other cryptocurrencies also witnessed an upward trend in their rates. Ethereum climbed up to $2906 with an increase of 7.5%. However, bitcoin is still 37% per cent down from its all-time high price, $65000, which it touched in mid-April. Since then, bitcoin has lost around 37%, but the good news that after the crash, it is gained 40%.
There are several factors that acted as the driving force for the decline of bitcoin’s price, but the latest one is the bitcoin ban in China. Chinese banking authorities passed strict instructions to all its banks that no one shall facilitate bitcoin transactions. Bitcoin mining has been causing significant damage to the environment as it increases the carbon emission in the atmosphere, which is the primary reason behind increasing global warming. The stance of Europe’s largest bank again pulled the bitcoin price down, and things become worse for bitcoins.
Elon Musk carrying the value of minor cryptocurrencies
Bitcoin is the most popular and the most prominent cryptocurrency, but there are several other small cryptocurrencies in the market. The crypto market crash has left a massive impact on these small cryptocurrencies too. If we talk about Ethereum, its price increased by 10% and reached the mark of $3000. The digital currencies have gone through some wild price fluctuations after the tweets made by Elon Musk. Recently, Elon Musk criticized bitcoin and said its mining has a negative impact on the environment, and it made him take a U-turn on his decision about allowing the customers to buy Tesla cars using bitcoins.
Elon Musk said that he always supported and will support cryptocurrency, but he doesn’t support the fossil fuel consumption caused by bitcoin mining. Such a statement from an influential person like Elon Musk bruised the image of bitcoin, and people started losing their faith in it. It was the main reason behind a massive number of people liquidating their bitcoin investment which led to a sudden plunge in the demand of bitcoin in the market, and consequently, the market crashed.
China cracks down is the main reason for the market downfall
The crypto market has been fluctuating for few weeks, and several factors have been responsible for the massive change in rates and prices. But the most significant and latest reason behind the falling price of the top cryptocurrency; bitcoin, in China. Over 70% of bitcoin mining is done in China, but now China has drafted some regulations regarding the crypto operations and has told all the banks to place a complete ban on all crypto transactions. Such strict behaviour of China regarding digital currency harmed the already bruised crypto market.
Bitcoin has been struggling to touch the market of $40000 and hold its position, whereas other cryptocurrencies, Ethereum, showed signs of a quick recovery and increased by over 8%. However, it is still too far away from its monthly high, but it is recovering quickly. All the smaller cryptocurrencies such as Ripple, Chainlink, Litecoin, Cardano also grew and gained some points.