There is bad news and yet good news for some, who had invested in cryptocurrencies like Bitcoin, Ethereum and Ripple just recently. All three of them majorly experienced a major price drop and resulted in more than $100 billion decreases in their overall values.
This drastic drop happened in just within 24 hours, on Friday. The major reason as per CNBC reported is that there were concerns, “over tighter regulation and worries that the bitcoin price was manipulated on a major exchange.”
Sourcing CoinMarketCap.com for data, the total value of all cryptocurrencies all over the globe in circulation was a whopping $405 billion yesterday morning according to the New York time. Even if it seems like a very big figure to a newcomer, it was more than a $112.6 billion decrease in total market capitalization just within a day. The total market capitalization had been calculated according to the respective prices of digital currencies across notable crypto exchanges.
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This week didn’t prove good for cryptocurrencies as the price drop indicates. The day before yesterday, Bitcoin priced at $9,000 dropping altogether to even below the $8000 mark this Friday. This is per the Coindesk’s bitcoin price index.
Not only did Bitcoin take a plunge but Ethereum and Ripple did too. While Ethereum dropped down by 12 percent, Ripple did even further by a decrease in value of about 13 percent as compared to yesterday.
Maybe another reason behind this crypto downfall is how media is currently portraying the situation regarding the instability of cryptocurrencies.
Everyone who wants to invest in cryptocurrencies is looking for the cryptomarket to get stable. In fact, with the ongoing current situation like Indian Finance Minister Arun Jaitley saying that his country wants to get rid of any illegal use of cryptocurrencies, other countries would soon follow suit. This shall lead to further instability as you never know when another country with a good economy is going to drop a bombshell.
It is expected that due to the nature of these cryptocurrencies, the crypto market wouldn’t really be stable at any time. Yes, there are high hopes from some cryptocurrencies like Bitcoin to even reach the $50,000 mark by this year, but that doesn’t mean the ride shall be a smooth one.
The gravest thing which people do is invest their lifetime earnings into the crypto market, not realizing the risk they are taking. It can either make you lots of rich or leave you stranded out there alone. It is not something really in anyone’s control by now. Yes, there are certain times to catch the bus, like if anything is getting underpriced, there are more chances of it bouncing back, and then you can invest. People don’t realize and they just invest based on their instinct, thinking they could get rich by the morning.
It’s not like that, there are other major plays too. For instance, last week, nearly $500 million in cryptocurrency known as NEM got stolen when Coincheck was hacked. It resulted in the price drop of the currency even when there was no fault with the crypto-currency itself. It just highlighted the point that nothing is in control in the crypto-world. It is all either gold or just pixie dust.