In recent months, cryptos have continued to strengthen in recent times, but entering the beginning of May, the value of cryptocurrencies began to fall. The decline in bitcoin price was also followed by other cryptocurrencies. And Dogecoin is one of the cryptocurrencies that scored the deepest decline. The decline in bitcoin and other major cryptocurrencies can be said by several factors that are happening at this time where there are 3 points that are more in the spotlight, starting from the massive blackout in Xinjiang, China. So this has resulted in a large reduction in hash rate in bitcoin mines and has made bitcoin transactions an old problem, namely transaction problems that are getting longer.
Another factor that has caused negative sentiment to still haunt the bitcoin and altcoin markets recently is also the problems with Turkey's Thodex exchange. Where market players are looking at cases of a suspected fraud investigation that has been carried out by the founder of a crypto exchange in Turkey, Thodex. Faruk Fatih Ozer, as the founder of Thodex, is currently circulating that he has fled with investors worth the US $ 2 billion.
And the most highlight of the 2 factors above is the new policy made by US President Joe Biden. Where the current market conditions are also in the shadow of concern about the President of the United States' plans to raise taxes on the rich. So that the three main points that are happening right now have caused the decline that has occurred recently, it has also raised questions for the uncertainty problem in the crypto market, especially new players.
Then the question arises, is crypto still bullish? If we look at market corrections, the current corrections are only short-term. In the long term, I am still optimistic that crypto asset prices are still bullish, possibly in the coming July and August.
Corrections are a natural part of the market, they can happen anywhere and this has become a very natural thing in the context of the crypto ecosystem. Looking at what happened in 2016-2017, crypto underwent 6 corrections before heading to new highs.
Seeing the decline that occurred is still in a reasonable condition because, in fact, the prices for several other crypto assets have actually jumped sharply. In other words, when viewed properly, there are actually some market players who are making a profit.
In actual Bitcoin, if the price drop on Bitcoin hits the US $ 40,000 mark, it will create a new call for buyers to buy Bitcoin so as not to touch that level. Because if it happens it is an excessive drop. And if you look at Etherreum, the crypto created by Vitalik is driving crypto and has surpassed Bitcoin's performance rate.
And it can be said that even though three factors that have become market sentiment have made the crypto market shock. Some analysts still believe the market will stabilize again. The most basic and strong reason is that many retail and institutional investors currently accept digital or cryptocurrencies as legitimate assets.
Bitcoin when viewed recently is bigger than some of the other well-known trending assets in recent periods. Gold used to be in the 70s, then moved on to dot-com technology in the late 1990s, and property became a trend in the mid-2000s. So seeing the decline that has occurred in the last few days it can be said that this is a healthy correction that has actually been happening for a long time. The conclusion is not to panic, but you should be able to see opportunities, in this case, look at it from a more optimistic point of view. Because actually the increase is not over yet, and all of this still tends to make its way upward.