Bitcoin is the leading and influential cryptocurrency existing in the marketplace at the instance. Bitcoin has confronted ample ups and lows in recent years. The price of bitcoin blazed the trail of rising in the year 2011 as bitcoin nearly reached $35.
Subsequent to that year, a trustable exchange of bitcoin closed a deal with the utmost renowned sports streaming channel named ESPN, the event changed bitcoin upside down, and bitcoin was acknowledged in a narrow range of time by the significant market players.
Recently the cryptocurrency market crash has caused some serious damage to the bitcoin investors as well as traders, either scalpers or swing traders. You can use bitcoin champion to find worth investing resources. Everyone is familiar with what happened to bitcoin on the 19th of May, but no one is actually familiar with the actual reasons behind that explicit incident.
Below mentioned are some of the crucial reasons why bitcoin crashed last month, and should you sell bitcoin or not, let’s dive in.
Bitcoin is exceedingly volatile in nature, and almost every attendee of the cryptocurrency industry just noticed this character of bitcoin. The volatility of bitcoin demonstrates sudden ups and sudden lows of bitcoin. The sudden ups are sudden lows of bitcoin are sometimes unbearable.
The entire month of May and June was into the volatile territory of bitcoin as bitcoin fluctuated to an exceeding extent in these two months. All the more, bitcoin torched its least price of this year, and the mere reason behind the fact is the bitcoin market crash. Here are some of the reasons why the cryptocurrency market crashed.
China Announcing Cryptocurrency Crackdown!
Undoubtedly bitcoin is a decentralized cryptocurrency. However, the value of bitcoin is exceedingly impacted due to the announcement of higher authorities subjected to bitcoin or any other cryptocurrency. The jointed committee of china announced on the 18th of May that the country is about to crack down on cryptocurrencies in China.
What Did The Cryptocurrency Crackdown Refer To?
The cryptocurrency crackdown primarily includes halting any financial institution rendering services regarding bitcoin and another cryptocurrency to the new users as these financial institutions are allowed to render services to previous users so that these investors and traders can convert their bitcoin stash into fiat currencies up to the predefined date of the ban.
All the more, it correspondingly included banning any progression subjected with bitcoin or any of the cryptocurrency such as bitcoin trading and holding bitcoin as a speculative asset.
The ban primarily focused on the bitcoin mining ban as the energy consumption of bitcoin mining is just affecting the environment of china to an exceeding extent as per the robust sources. The fact might amaze you that higher authorities have already blazed the trail of banning bitcoin mining pools in the country. All the more few bitcoin miners flew away from china in order to sustain the Bitcoin mining progression.
Elon Musk tweet
Elon musk’s tweet is correspondingly claimed as the reason for the bitcoin carnage. Bitcoin overcame a technical hurdle in the initial days of May, and it was expected to render a commendable subsequent to that incident. However, on the 13th of May, the reversal Elon musk tweet just stunned everyone, and bitcoin confronted a weekend route.
In March, Elon musk announced to accept bitcoin as a payment method for tesla motors which inclined the value of bitcoin. In a nutshell, the tweet of Elon was correspondingly alleged as the reason for the cryptocurrency market crash as the bitcoin price fell after Elon musk’s tweet and was conferred by the china announcement.
Should You Sell Your Bitcoin After The Market Crash?
According to proficient analysts and researchers of the cryptocurrency industry, you should avoid selling bitcoin. All the more, instead of selling bitcoin, you must consider holding more bitcoin units. The prominent reason behind the fact is that bitcoin is expected to grow more in the future, and the cryptocurrency crash was an opportunity for you to buy more bitcoin units at a much lower price.
These are many reasons why the cryptocurrency market crashed.