After a growing and probably unsustainable rise in the last 12 months, Bitcoin suffered a brief and sudden crash over the weekend, dropping nearly 15% of its value in less than an hour – a clear warning of the unpredictability of cryptocurrency volatility .
Bitcoin dropped in “value” from about $ 59,000 to $ 51,000 before rebounding. Ethereum and Dogecoin also suffered dramatic and sudden losses, before recovering some of their losses.
At this time last year Bitcoin was boiling to around US $ 7,725 after slamming up and down on the spot since 2018. But last year, fueled by fears of the U.S. stock market that has overheating, Covid’s volatility (whatever that means), government donations and people – with too much time on their hands, Bitcoin surged sharply to a peak of $ 63,588 on Tuesday. But Newton’s first law (the scientist, not me) came into effect, and with poison.
The price of one Bitcoin fell lowest at $ 52,810.06 on Saturday after plummeting more than $ 7,000 in one hour before stabilizing.
The fall on Saturday appears to have been triggered by a rumor on Twitter that the U.S. Treasury has cracked down on money-laundering schemes related to cryptocurrencies. Separately, Reuters reported that a power blackout in China’s Xinjiang region, where much of Bitcoin’s “mining” takes place, is to blame for the steep fall.
That information comes from the CoinMarketCap data website.
The sharp rise in cryptocurrencies over the past 12 months has attracted much attention from governments and investors and RobinHood’s trading brigade. Coinbass went public, and thus “mainstream”, last Wednesday.
“All eyes are on Coinbase … as the cryptocurrency exchange prepares for its first day of trading as a public company on the Nasdaq under the symbol” COIN “.
The emergence of the Coinbase market is a special event for several reasons. First, this will be the first major direct listing of the Nasdaq, an unusual route for companies to go public without underwriting an investment bank. ”- USA Today
So Dogecoin had a 500% rally – an ‘asset’ created as a joke 8 years ago – on April 16th. 500% !!!
The enthusiastic support of cryptocurrencies, almost cult, has their moment and proves, for the time being, that they can live their day even under the financial sun. With Coinbase’s first appearance on Wall Street last week, they all went in suits.
The very strong and tempting rise in Bitcoin values last year made the broader financial market talk about the bubble in the cryptocurrency market: Bitcoin’s value has more than doubled since early this year. The market will decide whether that bubble will continue to grow or do what bubbles do in the long run.
At the end of 2017, the value of the Bitcoin digital token increased to nearly $ 20,000 before crashing to nearly $ 3,000 the following year.
For now, all eyes are on cryptocurrencies to see how they move. The only thing that can be guaranteed is that their score will remain volatile and that there will be winners and losers.