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The price of Bitcoin has dropped significantly over the past few hours. As a result, the entire crypto market fell. Ethereum, Dogecoin, Cardano, BNB, all major currencies have seen their prices drop by 5-10%. This price drop was sudden and unexpected, as Bitcoin had traded comfortably in the $ 35,000- $ 40,000 range over the past week. Read on to find out why the crypto market is down.
Why is the crypto market declining?
There was a big factor that was directly responsible for the small crypto crash that wiped out 5-10% of the net worth of major cryptocurrencies overnight. Appearing in an interview with the Fox Business Network, former US President Donald Trump said Bitcoin “appears to be a scam.” He went on to say that he didn’t like Bitcoin because he sees it as another currency that competes with the dollar. Trump also added that he wanted the dollar to be the universal currency of the world. As the former President of the United States, Trump’s words still hold true in the market, it seems as soon as his interview aired, the price of Bitcoin fell over 7% in just a few hours.
The fall in the crypto markets began in early May when Elon Musk announced on Twitter that Tesla would stop accepting Bitcoin payments. Throughout the following week, Elon Musk continued to denigrate Bitcoin, calling it bad for the environment. The crypto market saw one of the biggest declines in years after China tightened its ban on crypto exchanges and made Bitcoin mining illegal on May 19. Since then, the price of Bitcoin has fluctuated on a downward trajectory. Trump’s latest announcement caused more fear in the markets, leading to a sharp drop in prices. At the time of writing this article, the price of Bitcoin stands at $ 32,801, up from $ 36,728 in 24 hours.
As Bitcoin has fallen, the price of other coins has also dropped significantly. The price of Dogecoin has fallen by more than 12%. Cardano recorded a drop of 9.77 percent. Matic, one of the top performing coins of 2021, fell more than 13%. Ripple (XRP), which had consistently stuck around the dollar’s price, also fell 9.61%. For now, most coins are still down with no signs of a recovery. However, the crypto markets are emotionally driven and volatile and could jump in either direction very soon.
DISCLAIMER: The information provided on this website is for educational and entertainment purposes. The information provided on this website does not constitute investment advice, financial advice or business advice. Republic World does not recommend the purchase of cryptocurrency. Crypto markets are very volatile and crypto investments are risky. Readers should do their own research on cryptocurrencies and consult their financial advisor before making any crypto investments.IMAGE: SHUTTERSTOCK
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