Crypto News/ Why is Crypto Down Today?
The price of Bitcoin fell below $30,000 in a flash crash. Ethereum dropped below $1,890. Dogecoin dipped to a low 24 cents. Because of this news, people started to think that things could get a lot worse before they get better.
China recently placed a ban on financial institutions against the cryptocurrency market.
After reaching its previous all-time high of $20,000 in 2017, Bitcoin continued to build a momentum reaching $40,000. Then Tesla announced that they had bought $1.5 Billion with Bitcoin as a portion of cash reserves. They said that they will accept Bitcoin as a form of payment. After this news, the price of Bitcoin went 20% up. The price of Bitcoin reached nearly $63,000.
However, they started going back down immediately. The price of Bitcoin fell to $48,000. Some investors saw it as an opportunity to buy it. Unfortunately, Tesla announced that they will not accept Bitcoin as a form of payment anymore. We all know Elon Musk’s influence on the crypto market. Therefore, market reacted it right away and the price of Bitcoin started to fall.
After Elon Musk’s tweet China came out with a statement and they said they are going to ban financial institutions from cryptocurrency. Although this ban is only for financial institutions, it affects everything. China also was the first to ban initial coin offerings. Because of these things the price of Bitcoin quickly fell below $29,500 and today it is trading at 35,917 dollars.
The Crypto Market Crash
A lot of people are having flashbacks from the last market dip that we had. We can say that everything started with Elon Musk. Since Dogecoin and SNL, Elon has been showing his status. However, it can be a good opportunity to invest right now. Old investors have seen a lot of dips in the market. If you are staying long term, it is going to be a positive return for you. Bitcoin reached its highest market cap level just last month. But we already know that the crypto market is very volatile, and it dropped from its highest level to below $30,000. While in terms of percentage loss, this 40% loss is not the highest loss Bitcoin has ever seen.
Nobody knows if this decline will continue or not. It can be just the beginning. As I mentioned earlier it can be the perfect time to buy crypto and invest. However, if you do not believe in cryptocurrencies and think that it is going down even further you can start selling your crypto. It depends on your decision and do not forget that you are the only person that will decide about your investment.
Dogecoin is better than Bitcoin in a few ways. It is faster to transact and cheaper to use. Because of these reasons #acceptdoge hashtag has been trending on the Twitter. Even Coinbase finally accepted it and said that they will list it on the exchange. This Coinbase action is going to blow up the price even more. Dogecoin was a fork of Bitcoin. Actually, it was Litecoin that was originally a fork of Bitcoin and Dogecoin was a fork of Litecoin. Dogecoin uses a language called Script. It is an algorithm used to secure the network.
If you want to go with Dogecoin, you have to use the specialized mining equipment that mines script coins. Bitcoin’s algorithm is the SHA 256 algorithm. We do not really know where the market will go from here. Today it is trading at 0.34 dollars.
This content is not for financial advice. You should do your own research and you are responsible for your own decisions. Make your own decisions yourself.