Prices of cryptocurrencies have fallen off by as much as 40% over the last week
Prices of popular cryptocurrencies like Bitcoin, Etherium and DogeCoin have dropped massively in the last 24 hours. At the time of writing this article (May 20, 2021), Bitcoin was trading at a ~36 thousand US dollars, down from a near 50 thousand US dollars just a week ago. Meanwhile, Ethereum that was trading at the territory of 3800 US Dollars just a week ago around May 12, 2021 is now trading at 2600 US Dollars at the time of writing this article.
Prices of almost all coins are in the red and dropping. The drop in prices of these popular coins may seem dramatic but considering the high volatility of crypto assets, it should not come as a surprise.
Even the widely popular Dogecoin had a major value drop as well. According to CoinDesk, Dogecoin fell 42% in the last 24 hours to a price of $0.28 per coin. That’s a massive fall from the $0.70 value it had when Tesla CEO Elon Musk appeared on “Saturday Night Live” to endorse Dogecoin.
The reason behind cryptocurrency’s sudden fall
The dramatic pullback in bitcoin and other cryptocurrencies comes as a flurry of negative headlines and catalysts, from Tesla CEO Elon Musk to a new round of regulations by the Chinese government. Due to economic concerns, China has banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading.
The moves were not Beijing’s first moves against digital currency. In 2017, China shut down its local cryptocurrency exchanges, smothering a speculative market that had accounted for 90% of global bitcoin trading.
In June 2019, the People’s Bank of China issued a statement saying it would block access to all domestic and foreign cryptocurrency exchanges and Initial Coin Offering websites, aiming to clamp down on all cryptocurrency trading with a ban on foreign exchanges.
At the moment, Bitcoin still stands as the highest trading value cryptocurrency in the market, with Ethereum still placing at second. Most businesses in the world continue to endorse the cryptocurrency market so the doom-and-gloom mentions of a crypto market implosion is nowhere close to happening yet. However, there are some people in the market hastily dumping their crypto-stash already, so that may lead to a chain effect over the upcoming days.
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