The price of Bitcoin fell significantly over the past few hours. As a result, the whole crypto market tumbled downward. Ethereum, Dogecoin, Cardano, BNB all major currencies saw a fall in prices anywhere from 5 to 10 per cent. This fall in price was sudden and unexpected as Bitcoin had been comfortably trading in the $35k-40k bracket over the past week. Read on to know why is the crypto market going down.
Why is Crypto Market going down?
There was one big factor that was directly responsible for the small crypto crash that wiped out 5-10 per cent net worth from major cryptocurrencies overnight. Appearing in an interview on the Fox Business Network, former US President Donald Trump said that Bitcoin “seems like a scam”. He went on to say that he dislikes Bitcoin because he thinks of it as another currency competing against the dollar. Trump also added that he wants the dollar to be the universal currency of the world. As a former President of the US, Trumps’ words still hold sway in the market it appears, as soon after his interview aired, the price of Bitcoin dropped down more than 7 per cent in just a few hours.
The downfall of the crypto markets started early in May when Elon Musk announced on Twitter that Tesla would stop accepting payments in Bitcoin. Throughout the next week, Elon Musk continued to bash Bitcoin, calling it bad for the environment. The crypto market experienced one of the biggest dips in years after China reinforced their ban on crypto exchanges and made Bitcoin mining illegal on May 19. Since then the price of Bitcoin has fluctuated on a downwards trajectory. Trump’s latest announcement caused more fear in the markets which lead to the steep fall in price. At the time of writing this article, the price of Bitcoin stands at $32,801, down from a 24-hour high of $36,728.
As Bitcoin fell, the price of other coins fell significantly too. The price of Dogecoin fell by over 12 per cent. Cardano saw a 9.77 per cent fall. Matic, one of the best performing coins of 2021, fell by over 13 per cent. Ripple (XRP) which had consistently stayed around the price of a dollar, also fell by 9.61 per cent. As of now, most coins are still down with no sign of recovery yet. However, crypto markets are emotionally driven and volatile and could jump either way very soon.
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