cryptocurrency market

The Bitcoin market has seen a lot of volatility in recent months, recently taking a significant drop after two security-related incidents sparked investor panic. The first was the discovery of a bug in the Ledger Nano S wallet software, which allowed some users to gain unauthorized access to electronic wallets. This raised concerns

among many investors about the overall security of the Bitcoin system and led to numerous sell-offs to avoid potential further losses.

Shortly thereafter, another security-related incident would trigger further fear among market participants: A misleading advertising tweet falsely promoting that Tesla planned to sell all of its bitcoin assets would cause confusion and uncertainty about the future price of this cryptocurrency. This would result in more sell-offs by those concerned about their risk exposure associated with this highly contingent asset.

Taken together, these two events largely explain the drastic drop recorded during this specific period; However, there are other important factors that daily influence the exchange value of Bitcoin, such as the demand and supply of bitcoins in circulation, the positive and negative news related to cryptocurrency, and the political movements around this universally relevant topic and debate day after day.