In the last 2 months, the price of Bitcoin triggered many debates, mostly explaining how cryptocurrency is the future of digital currency and why it’s the perfect time for every developed and developing market to embrace it as an official alternate mode of payment. Barely a month after the scenario has changed drastically, raising more doubts about the future of cryptocurrencies due to volatile nature of the market.
Bitcoin, the leading cryptocurrency that sets the trends of the market, is one of the biggest concern for cryptocurrency traders now. The speed price of Bitcoin is crashing and making people wonder whether it will continue to drop before settling at the price it was trading at nearly a year back. As of now, it’s already gone back 6 months as of 9th June 2021, Bitcoin is trading at a value it touched in January 2021.
Bitcoin accounts for 41% of the worldwide cryptocurrency market by trading value.
Bitcoin Price Crash: The Big picture
- Bitcoin price continued to crash reaching $32,622 on June 08, 2021.
- A little over a month ago, In mid-April 2021, Bitcoin price soared to all-time high touching $63,346.
- A nearly 50% fall in the price of Bitcoin has rattled most Bitcoin traders and investors who joined the party late.
- The fall in Bitcoin price has a direct impact on the worldwide cryptocurrency market. Over $1 trillion wiped off, in terms of market cap, in the last 1 month as Bitcoin continue to fall drastically.
Bitcoin Trouble: The Takeaways
Some of the recent developments in the market are cited as the main reasons behind such a dramatic fall in the price of Bitcoin in such a short span of time.
The tweets from Elon Musk, one of the top billionaires, that have hinted that he getting rid of Bitcoin, are among the top reasons for the fall of Bitcoin.
China coming down heavily on Bitcoin trading and Indian financial institutions continue to maintain distance from cryptocurrency despite RBI clearance are other important factors that have damaged the positive sentiments that kept the cryptocurrency market rising until the start of drastic fall.
Bitcoin Price: The Big Question
Such volatile market conditions have raised a lot of doubts among cryptocurrency enthusiasts who are either in trading or mining. Many investors, especially the ones who joined the party in 2021 only, are now under the fear of losing money after the constant decline in the price of Bitcoin with each passing day. There are many who have started investing out of FOMO (Fear Of Missing Out) and now have started showing signs of panicking. Amongst all such development, a big question that no one has a definite answer to is – is bitcoin the future of digital currency or it’s all just a bubble created by some unknown person, probably smoking week sitting at an island once owned by Pablo Escobar?