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Bitcoin collapsed again temporarily, wiping out 2021 profits. The reason is as follows.

crypto market crashed again

According to Quindesk, the price of Bitcoin continued to fall, falling below 30,000 in exchanges on Tuesday, losing all of its digital currency gains.

In April, Bitcoin hit $ 4,629 while other cryptocurrencies were amassed. In May, Etherium hit 4,100 hits, an increase of 466% from this year, but has since fallen below $ 1,900. The drastic changes have been rooted in the speculative nature of cryptocurrencies since their emergence in recent years, such as China’s recent regulatory transactions and Elon Musk’s numerous tweets. Surprise discount.

Cryptocurrency supporters have noted the benefits of investing and the potential benefits of global trade. Banks on Wall Street that allow their clients to deposit bitcoin include JP Morgan Chase and Goldman Sachs. In November, Kathy Wood, CEO of ARK Investments and a leading cryptocurrency promoter, estimated that the price of Bitcoin would reach $ 500,000.

The roller coaster industry is still wary of financial analysts.

Bankrate.com analyst James Royal said in an email: “When we invest in cryptocurrency, we must remember that gambling is the name of the game.” “Anxiety and anxiety have gained in value, prices are driven by the perception of traders and retailers can go global and quickly if they are too optimistic.”

Michael Buri is a leading investor who emerged from the housing crisis before the financial crisis of 200 and was the focus of the 2015 film The Big Short. According to Bloomberg, he saw in a series of deleted tweets that millions of investors were “the mothers of all destruction,” involving big investments called “hissing meme” such as crypto and gamestop.

The price of Bitcoin came under pressure in the spring of May 18, when the China Banking Association asked the country’s financial institutions to suspend crypto services due to extreme unrest. The move rocked the prices of digital currencies, with some coins losing more than 20% of their value overnight.

Chinese traders once dominated the Bitcoin market, but their influence has drastically diminished after the crash. The cryptocurrency business in China has moved overseas.

“The cryptocurrency market is currently facing an information network that drives price volatility,” said Ulrik Lykke, CEO of cryptocurrency hedge fund ARK36.

More than $ 250 billion evaporated in the Bitcoin market alone last week, Lykke said. This number seems “astronomical,” but such characteristics aren’t uncommon in the volatile cryptocurrency market, he added.

“If you look at Bitcoin’s perspective, the situation may seem dark now, but historically, this is just another hurdle for Bitcoin to overcome, and it has been exposed in the past. It was small by comparison.” The words of happiness.

Bitcoin is still growing over 30% year-on-year and around 300% over the past 12 months.

crypto market last week