Have you been riding on high the cryptocurrency wave, or has it found you just about to enter? You may have asked yourself what all this fuss about the cryptocurrency crash is all about. Analysts around the world are predicting the fall to an even lower value. For instance, over the past ten days, bitcoin value has fallen to $30,000, losing about 30% of its value. Etherium dropped to $1902, losing over a quarter of its value. Over the last 24 hours, all major cryptocurrencies have witnessed an unprecedented fall leading to speculation about whether this is a dip or a crash.
The wave has not spared stocks of companies associated with this type of currency. Tesla and CoinBase, for instance, are down in value since Wednesday this week. The big sell off caused services such as CoinBase to crash while a service such as Binance closed all withdrawals due to network congestion. Almost the entire cryptocurrency industry appears to be moving to a downward trajectory, causing thousands of investors to wonder whether the currency may have peaked its value or is it a dip.
Looking back, the CoinBase IPO saw the company become an 85 billion dollar company revealing one of the peak moments of the cryptocurrency. The abnormal eruption of NFT prices is another instance which in hindsight, should have sent signals to investors about a potential peaking of the currency. In his recent Saturday Night Live and his week’s long tweet about Bitcoin and Dogecoin, Elon Musk sparked a flurry of price fluctuations that saw the market jitter with doubt.
Musk’s turnaround about bitcoin on flimsy environmental grounds may have been a sign that there was a likely market crash. When Tesla stopped receiving payments using BitCoin and disposed of its whole stash of bitcoins, it must have signaled a move in the market. Further, the Chinese government cracking down on cryptocurrency terming it as an illegal currency culminated in enough reasons that sent Bitcoin crashing down 30%.
Those still holding the cryptocurrency, especially those that bought recently, must be waiting with bated breath for a turnaround as those hedging against the currency value praying that the deal goes in their favor. Whichever the direction it goes, cryptocurrency is not for the faint-hearted or tourists but believers.