Experts Speak on Bitcoin Crash: Why It Happened and Reasons it Might or Might Not Go Up Immediately
- Bitcoin has plunged to a low it hasn't seen in over eight months in the previous two weeks, and investors are concerned
- Bitcoin's current price is at an 8-month low, and it's on the verge of falling below $20,000, where it was in 2017
- Experts have weighed in on what's going on and why it might or might not reach the level it was before the crash, at least for a long time
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Bitcoin, the world's most popular crypto cryptocurrency coin has plummeted to an 18-month low as investors sell off their holdings.
The price of the cryptocurrency plummeted by as low as $20,381.65 on Thursday 16, June, according to data from coinmarketcap.
It has since trimmed some of those losses on the early hours of Friday, June 17 Friday morning is currently trading at $21,099.71 at the time of writing.
Source: Facebook
The current price when compared to last November's all-time high of $67,802.30 Bitcoin is down by 70%
Other cryptocurrencies shed values
Bitcoin is not the only cryptocurrency which has taken a tumble amid a global downturn in cryptocurrencies which have shaved thousands of pounds from investments.
Ethereum and Tether - the world's second and third-largest crypto coins respectively, have also plunged in recent weeks.
Of course, returns when investing are never guaranteed, even more so with cryptocurrencies.
Why has Bitcoin crashed?
Bitcoin, and other cryptocurrencies like Ethereum, have plunged in, reflecting the global markets and fears over inflation and interest rate rises.
Concerns over rising prices and rate rises have affected the mainstream markets, and that has also had a knock-on effect on crypto values.
In fact, a cryptocurrency, Celsius, has frozen withdrawals amid market volatility, which has then had a knock-on effect on the wider market.
Celsius' own crypto token, CEL, is trading at just 20 cents per coin after tanking from $3 in April, according to CoinMarketCap.
Lowery said:
"Major US cryptocurrency lending company Celsius Network – which had been offering annual yields of up to 17% on crypto holdings - froze withdrawals and transfers citing ‘extreme’ market conditions, only to be followed shortly afterwards by crypto trading giant Binance.
“Such moves will only add to jitters over the stability of the market in cryptocurrencies, which had already been stoked recently by the collapse of the Luna and Terra tokens.
"The world’s largest stablecoin Tether also temporarily broke its link with the US dollar last month."
Will Bitcoin go up again?
Recent plunges has sparked fears about the long-term future of cryptocurrencies, and whether the market will ever recover.
But according to Ric Edelman, author of "The Truth About Crypto," in an interview with Bloomberg it is yes, the price will recover.
Edelman noted this is the 7th time the market has suffered a drop in the value of at least 70%, and there is no need to worry.
He noted that as far as technology keeps growing which is what cryptocurrency is all about, it will bounce back.
He said:
"Cryptocurrency needs regulation and the faster it happens the better for all. But I can assure bitcoin uses blockchain technology and also about software and as more companies uses the technology , crpto will continue to be relevant."
Buying dip
However, Victoria Scholar told the Sun that the price of Bitcoin is never guaranteed and could easily fall further, or go up.
She noted that a fallback from large plunges in no way means the coin will climb further.
Prices can go up and down in the blink of an eye - one day you might be up, but the next day you could lose all your money.
She said:
"Recent price action serves as an important reminder of the wild swings that are characteristic of the crypto market that can on the one hand can create outsized gains for traders and investors but can also lead to damaging losses."
Cryptocurrency investors in tears as Ethereum plunges into a 14-month low
Legit.ng report said that as US inflation hits a new 40-year high, Bitcoin and Ether fell on Sunday, June 12, 2022, as they joined a wider crypto sell-offs which saw investors go into panic mode.
Nairametrics report says Ether went down to as much as 5 per cent to $1,440 which is its lowest level since March 2021, while Bitcoin fell to $27,000, also its lowest in one month.
Other crypto assets were also in the red including Cardano, OMG, XRP and Avalanche.
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Source: Legit.ng
