THE CRYPTO CRASH
“Jack fell down and broke his crown
And Jill came tumbling after”
Our Jack here is the Bitcoin, falling down to $32000 after it had peaked to a record high almost $65000, our Jill here is the entire global crypto market cap, after the Bitcoin plummeted the crypto market followed it, loosing up to a trillion dollar. It took nearly 12 years for its market cap to reach $1 trillion and it went on to more than double its size, it took merely few months to reach a figure of $2.3 trillion, more than that of apple’s valuation.
China banning the financial and payment institutions from providing crypto currency services caused Bitcoin to lose 22% and Etherium, which holds the major share in the market cap next to Bitcoin lost up to 28%, this is the highest single day loss for both the cryptos since march 2020. China does this in the fear of cryptos threat against its fiat money.
Well, the crypto market cap might have had the the highest single day loss, but had really started falling down for a week now, we all know when exactly it all began. The tweet with a noble cause to protect our environment, rescinding the acceptance of bitcoin because mining this crypto does a lot of damage to our environment as requires large amounts of power, it is a threat because power is generated from burning down fossil fuels. But we know that he was doing this just to back the most popular meme coin, Doge, which lost 45% In today's turmoil, because you know the environmental concerns over Bitcoin mining isn't something new, he shouldn't have allowed the purchase of Tesla with a Bitcoin in the first place. Elon Musk seriously posses the power of manipulating the crypto market with less than 140 character of Tweet, it isn't something new, we have witnessed him do this with stock market as well.
Is the crypto going to recover from this? Can't really say, unlike the stock market, where the volatility is predictable but the crypo market’s volatility is highly uncertain. It is so because it is still an emerging market, takes time for it to mature.
What's good is that you can buy the dip, but if you've been hit by the crash you dare to HODL.
