Bitcoin, the world’s most popular cryptocurrency, has been on a downward trend for some time now although it shows signs of recovery but goes down again. We all know this decline brings doubts to the investors’ minds as cryptocurrency is not only for investment purposes but a kind of digital asset.
Crypto used for shopping and various services in many countries even if this digital currency is not in printed form like bank bills or minted coins.
Until a few weeks ago, I used to consider Tesla owner Elon Musk as a visionary. I thought that Elon Musk was tech-savvy and can lead the world to a secured financial future. But no more, I don’t feel that way. Why? Recently, Elon Musk refused to accept bitcoin as a payment method for his Tesla car. He thought Bitcoin is a big environmental threat.
Since then, Bitcoin has seen a huge decline. In mid-May, there was a strong weakness in all cryptocurrencies around the world.
Now we know it as Black May for Crypto-World
The month of May has been nothing less than a nightmare for an investor in cryptocurrencies. Between May 13 and May 20, the value of crypto holdings of investors has decreased by 60%. Many investors panicked and got rid of their investments.
There is no doubt about the fact now that most Investors believe Tesla owner Elon Musk behaved irresponsibly and has played with the sentiments of millions of investors. We believe Elon’s statement triggered the wealth of investors to go down drastically, reasons best known to Musk only though. Was he trying to play with Doge?
The market cap of cryptocurrencies has crossed $1,635 billion. The market cap of Bitcoin has reached $674 billion. Ethereum, the world’s second-largest cryptocurrency’ market cap, is trading a little higher now but nowhere near its ATH.
No Fixed Time For crypto trading
Trading takes place in the cryptocurrency market all the time, so it faces music all the time too. This market is open on round-the-clock 7x24. After Elon Musk’s tweet on bitcoin, the prices of cryptocurrencies have fallen by up to 50 percent. Tesla’s Elon Musk had said that Tesla would not accept payment in bitcoin. Along with this, Musk had said that it is not possible to compensate for the damage caused to the environment because of crypto mining.
Panic selling increased trouble
With Tesla taking a U-turn on cryptocurrency, the Chinese government also started cracking down on institutions dealing in crypto. And both these reasons started panic selling in cryptocurrency. Many investors also started booking profits from crypto on this occasion, which worsened the situation of the crypto market. And all this caused a huge loss to crypto investors and their confidence shook.
The price of crypto that had increased significantly in the last 1 year. Because of this, the expectations of the investors had increased significantly. Investors who had invested in cryptocurrency within last year, their money had increased by 10 times. Even after the weakness in Bitcoin in May, the returns from it have been around 400% compared to 1 year ago. But would you believe, Dogecoin is trading at 140x from June 2020 levels? Matic network has increased by over 7000%.
A word of caution here, if you are planning to invest in cryptocurrency, then there are many dangers in it. The price of cryptocurrency fluctuates quick so don’t invest if you can’t afford to lose. The authorities have either disapproved of cryptocurrencies in many countries in the world or not making their intention clear or making any firm rules.
And as if that was not enough, the crypto is facing severe cyberattacks, wallets getting hacked, scammers at large, and the central banks and Fintech companies serving entities dealing in virtual currency (crypto).of most countries trying to find ways to ban cryptocurrencies. It serves their interests after all.
