May 23, 2021
It's been more than a week now that the crypto market is in the bloody red situation. The market crash started after Elon Musk announced the suspension of Bitcoin payments in Tesla. This leads to a huge circulation of FUDs in the crypto market and the cryptocurrency market cap dipped below 1.8 Trillion after Bitcoin dropped to $38k+.
According to Coingecko data, Bitcoin is down more than -30% and tradable at $36,851 at the time of writing. The coin reached a low of $34, 479 last Saturday which is the lowest price since February.
On the other hand, Ethereum, the second-largest cryptocurrency is down -42.6% in the last 7 days. After reaching its new ATH last May 12, it reached a low of $2,154 at the time of writing (May 22).
Meanwhile, our favorite crypto Bitcoin Cash is down -49.4% in the last 7 days. And from its ATH last May 12, it reached a low of $600, and its market cap dropped to $12.3M which placed its rank down to #11.
On May 15, we have witnessed how the crypto market cap reached $2.3 Trillion of 9,541 coins. It was such a huge growth within the first 3 months of the year. However, at the time of writing the total crypto market cap is down to $1.5T and that is more than -11% down in 24 hours period. And last May 19, according to the LiquidationData of Btby, nearly $1.5B crypto long positions got liquidated because of the market crash. This isn't only a huge loss to the crypto market cap, but also to more than 250,000 crypto traders that have been affected by the market crash.
Bitcoin is not our real rival, but the real-world
We have always thought that Bitcoin is the greatest rival of other cryptocurrencies in this crypto world, but the recent market crash has proved that it's NOT Bitcoin our real enemy, but the real world.
When the US President announced the capital gains tax proposal, Bitcoin price sinks because traders were anxious to sell and secure their profits. The whole crypto market has been affected as well pulling down the Alts.
And this Elon Musk tweet about the suspension of Bitcoin in Tesla, it gave a huge impact on the whole crypto market, affecting big and small investors, FUDs circulate the crypto space and the market didn't recover yet from that bloody bear episodes. It only shows how an influential man can drive a coin to the moon and can dump it to the bottom in just one tweet.
And after the bounce back last May 20 that gave small spikes on the crypto trends and small hopes to crypto enthusiasts, the crypto market then continued to drop because of another source of FUD that shaken the whole crypto space leading to a longer bear market.
Bitcoin tumbled again after China calls for a crackdown on Bitcoin mining and trading cryptocurrencies. The reason for China is to protect the financial system. The statement was released late Friday and in less than 24 hours, the Bitcoin price crashed down to $30,101. It tumbled more than 30% from its peak dragging down ETH, BCH, DOGE, BNB, ADA, and the rest of the Altcoins.
The concern of China is not only about protecting the financial system but also because of the massive amount of energy used for Bitcoin mining, the same concern of Elon Musk. We know that majority of the crypto mining companies, large crypto exchanges, and blockchain developers are owned by the Chinese, even China's central bank itself created its digital currency to facilitate the growth of digital currency space in the country.
Binance for example, the largest crypto exchange platform owned by a Chinese man, Changpeng Zhao, was initially based in China but later moved to another place due to increasing crypto regulation of China.
Bitmain, the company responsible for making Application-Specific Integrated Circuit (ASIC) chips for Bitcoin mining is based in Beijing China with 11 mining farms operating around China. It is also involved in the 2018 Bitcoin Cash fork.
The second most well-funded blockchain company in China, Hyperchain is responsible for inventing the Parallel Blockchain Technology that gives better performance, scalability, and capacity of Blockchain. They developed a host of enterprise blockchain products and distributed ledger technologies (DLTs).
And another top crypto exchange platform in the industry Kucoin is also based in China with millions of users.
And more well-funded blockchain companies in China are listed in the photo below.
And just two days ago, after China calls for a Bitcoin mining crackdown, the Biden administration tightened the regulations for digital currencies. The US proposal says that more than $10,000 needs to be reported to US tax authorities under the new administration.
Just after that announcement, the price of Bitcoin again dropped to -5%, affecting the whole crypto market. The fact that the market hasn't recovered yet from the huge dropped, another plunge happened, and the whole market remained bloody red.
Although Bitmain in China has said that their transactions won't be affected, the more strict regulations of China still caused chaos and fear to the millions of users of cryptocurrencies around the world.
Due to these recent issues against cryptocurrencies, the bear continued to run in the crypto space and FUD continued to increase leaving the crypto market bloody red for almost two weeks now. However, we should not listen to FUDs, rather, hold tightly and wait for the market's recovery.
These only proved that influential people like Elon Musk and powerful countries like the US and China can turn the crypto market upside down.
For how long we will wait for this bear market to end? No one could tell.
But all we are sure of, the bear will get tired and the bull will take over. Remember that the lower the plunge, the higher the climb. Let's just wait for that time to happen.
And to lift your hope, in case you don't know yet, the YouTuber 1stMil.com just released a new video about the upcoming $750M investment in the Bitcoin Cash network.
At least in this way, we are sure that BCH price will rise again in the next few days. And let's just hope that, the whole market will recover as soon as possible. By this time, it's not Bitcoin or other cryptocurrencies our greatest rival, but the real world.
The bear is inevitable, but we can protect our assets from it.
DO NOT LISTEN TO FUDs AND HODL TIGHTLY, THE BULL WILL COME SOON.
Lead image from https://www.elfacosmeticos.com.br/8e7797-galleon-group_2019/01/17/business/bear-market-arbitrary-label-shiller.html
As ups and downs are the part of life , it is also a part in Forex and crypto currency. The prices will jump high and then also backed. So what we have to do. We have to be remain motivated and don't lose hope. Bitcoin will give bullish so don't be disappointed.