Bitcoin’s market capitalization has dropped by over a trillion dollars in only a few days. Bitcoin’s price dropped by half in May, underscoring the cryptocurrency’s unpredictability at a moment when more individuals are interested in joining in on the excitement. Despite Tesla’s statement that it would buy $1.5 billion worth of bitcoin, bitcoin has experienced a dramatic plunge, wiping out all of its benefits. It has also dropped by more than half since reaching a peak of $64,829 in mid-April.
Musk announced on May 12 that Tesla has halted bitcoin vehicle orders associated with environmental worries about the so-called computationally “mining” process. High-powered and strong computers are needed to solve complicated mathematical challenges in order to facilitate bitcoin transactions.
Musk’s remarks led the whole cryptocurrency market to lose nearly $300 billion on the same day. Tesla maintains “diamond hands,” Musk said with emoticons on Twitter on Wednesday, implying that the firm is not surrendering its current bitcoin. That tweet was sent at the day’s lows for bitcoin.
Bitcoin, the wealthiest and very well-known cryptocurrency, was already under pressure from Tesla Inc. CEO Elon Musk’s remarks, but the news from China pushed it further lower. It fell to $30,066, a three-and-a-half-month low. From a historic amount of $64,895 on April 14, the cryptocurrency has fallen 54%. It’s also set to fall for the first time since November 2018.
Bitcoin’s dominance in the cryptocurrency ecosystem has dropped from nearly 70% to 43% in only two months.
|
Date |
Bitcoin Dominance |
| End of 2020 |
70.98% |
|
January |
63.09% |
| February |
61.73% |
|
March |
60.19% |
|
April |
50.18% |
| May |
43.25% |
What Does This Drop Mean for Cryptocurrency Traders?
Fluctuations like that are to be predicted for long-term crypto investors who use a repurchase methodology. As per Humphrey Yang, the personal economic specialist at Humphrey Talks, who resists examining his own assets during dangerous market dips, the recent drop is nothing to be concerned about. Since bitcoin has been one of the best-performing assets in the world over the last ten years, its investors has been increasing as a result of which its fall in the market share may decrease the investors in the coming months.
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