Bitcoin: Cryptocurrency's value falls sharply in 24 hour period
When you subscribe we will use the information you provide to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time.
Cryptocurrency has recently taken a central role in global financial interests, thanks in part to several altcoins making astronomical gains over the last few months. DOGE, SafeMoon and others like Shiba Inu Coin have increased their standing by thousands of percent. But other established currencies such as Bitcoin have forfeited staggering wealth, dragging the rest of the market with them.
Can the cryptocurrency market recover?
According to CoinMarketCap, nearly every coin in the top ten performing currencies has forfeited significant value over the last week.
The change is most noticeable in Bitcoin, now worth $38,358 (£27,107), down from nearly $50,000 (£35,334) this time last week.
Several factors have prompted this sudden free fall, but experts primarily blame the volatile nature of most decentralised digital currencies.
Bitcoin started dropping from its peak on May 12, not long after Tesla CEO Elon Musk announced his company would no longer accept the currency as payment.
By May 21, Bitcoin had lost 10 percent of its value, as Chinese authorities help sustain the net loss.
China’s State Council announced it would clamp down on mining and trading to “prevent and control financial risks.”
The world’s second-biggest economy has discouraged buyers, but experts believe this is just another angle of its overall volatility.
Cryptocurrencies have a predisposition to wild flailing and unpredictability.
As such, it could soon recoup value as quickly as it lost it.
Over the last decade, investors have tracked significant downfalls from dizzying highs more than once.
Close to this time last year – in June 2020 – Bitcoin was worth just under $10,000.
Bitcoin price: Will bitcoin value go up after cryptocurrency crash? – EXPLAINER
Elon Musk triggers Bitcoin price surge – claims Tesla has ‘diamonds’ – INSIGHT
Bitcoin mining COULD become environmentally viable – ANALYSIS
According to Bespoke Investment Group, the average crypto fall from a “record” high is between 40 and 69 percent of all trading days.
Bitcoin, in particular, has collapsed more than 40 percent from its own peak.
These figures mean Bitcoin and other currencies could eventually recover cratering values.
But to do so, it needs investor backing, and experts foresee potential future issues.
Institutions are becoming a creeping presence in the market, and others could soon follow China’s footsteps.
Henri Arslanian, global head of crypto at PwC consultants, said he wouldn’t be surprised to see other regulators eventually weigh in.
He told the Financial Times they could “warn investors” over the inherent market volatility.
Mr Arslanian added the presence of “institutional players and institutional investors” would not slow down “anytime soon”.
Source: Read Full Article