The tweet done by Elon Musk and the announcement to ban the services related to bitcoins and other cryptocurrencies by China has resulted in a recession in the world of crypto. Actually, the plunge in the world’s most significant cryptocurrency value was utterly unexpected by analysts and investors. Yes, it is true that the value of bitcoins was fallen more than 30% to near $30,000 in a single point. This is the only reason for major sell-offs of bitcoins and other digital currencies that lead to enormous traffic on the platform. The investors took the decision to offload their digital currency because they were not ready to face more than the bearable loss that happened at that time.
The data revealed that bitcoins had been traded at such a considerable level after a couple of months. Both buying and selling of the digital currency took place by the investors.
But after few days, the value of bitcoins started rebounding and went to approx. $38,205. This gave some hope to the investors as they thought the bitcoin would indeed get recovered within some time, and it is a good thing for those who access https://bitcoinpower.app/. But the china’s announcement again decreased the value of this digital currency by 13%, which was also a shocking fall as the crypto’s value again declined after some recovery.
Tesla’s announcement regarding releasing its bitcoins worth $1.5 billion also spread some noise, but it was erased with clarity which does not result in any change.
- Bitcoin is recognized as the head of the crypto world as its value directly impacts the importance of other digital currencies. This is the only reason that value of other currencies such as Ethereum and Dogecoins were also facing their own value, which was not a good thing for the entire crypto market. If you have diversified investment in the bitcoins, you have also invested in Dogecoin, which is also recognized as the meme coins. Even Dogecoin was enjoying its all-time high in the last week of April 2021, and unfortunately, it was also declined by 46%, which disappointed a vast number of investors. This is the reason that has caused the unexpected loss to cryptocurrency investors in the entire world.
- The massive traffic on the exchange platforms, which was only because of fear of loss, was the reason that affected the high-end platform like Coinbase. The users over here were not able to buy or sell the bitcoin or any other digital currency as the traffic level over here was raised by almost 400%. The platform developers were shocked and were not able to deal with this issue because this type of situation has not occurred earlier. They have also tweeted that whenever the problem is solved, as the platform will able to offer the service, the users will be notified.
- Elon Musk’s announcement has resulted in a roughly estimated loss of $300 billion, which is a really, very big amount for the cryptocurrency market. In simple words, only demanding investors who have held their investment by understanding that this situation will get corrected after time has sustained on the platform. Rest others have faced a loss and offloaded their asset because they were not ready to face loss beyond that as they stick in their mind that bitcoins will not rise anymore and it is only time to take the right action.
Are there any chances that China will again make such a negative announcement regarding bitcoins?
If you have been showing interest in bitcoins for a couple of years, then you would surely have noticed various moves taken by china from time to time. Since 2017, China has always been trying to wipe off the flow of cryptocurrency from its economy. The action taken on 19th May was also a move like that as they basically wanted to have their own digital currency. But it would not be possible that users will quickly switch to Digital currency launched by the Central bank of China because the investors are impressed with the bitcoins. They found it very relevant to manage and access and have complete trust in this currency.
At last, the investors should not take such announcements seriously because these have the main motive of creating fear so that investors can quickly get ready to release their bitcoins.