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Updated May 18th, 2021 at 11:28 IST

Why is the Crypto Market Down? Bitcoin crash brings down Crypto Market over the weekend

Over the past week, the crypto markets have seen significant loss, as many coins deflated in value. Read on to know why is the crypto market down.

Reported by: Sakshat Kolhatkar
why is the crypto market down
IMAGE: SHUTTERSTOCK | Image:self
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The cryptocurrency market has experienced an unprecedented profitable bull over the past year. Many crypto coins have multiplied in value tens of times. Coins like Dogecoin, Shiba Inu coin have made early investors millionaires. Ethereum has shown significant growth. Bitcoin reached peak price in April, reaching $64,000 in price. However, over the past few week, the crypto market has been continuously going down. Many cryptos have dropped in value significantly. Read on to know why is the crypto market down. 

Why is the Crypto Market Down?

The fall of the crypto market started when Elon Musk made a tweet declaring that Telsa has stopped accepting Bitcoin payments, citing the environmental concerns of Bitcoin. Overnight, the price of Bitcoin fell down 17 per cent. It's imperative to understand that the price of Bitcoin drives the whole crypto market. When Bitcoin falls significantly, it causes panic selling among crypto investors as they sell their Altcoins. Elon Musk didn't stop there, he continued to attack Bitcoin, calling it 'centralised' in another one of his tweets. As the negative tweets from Elon continued, the Bitcoin kept crashing. 

At the time of writing this article, the Bitcoin price stands at $45,191, almost a 28 per cent drop from the April peak price of $64,000. Ethereum is down by $500 from a peak price of more than $4000 to $3,500. Dogecoin is down from its peak price of $0.71 cents to hovering around $0.51 cents. Other major coins have also seen a significant fall in their prices.

It should, however, be noted that the crypto market crash is a common phenomenon and the crypto markets are highly volatile. Price corrections like these happen every few months. There are many other factors that caused this crash but Elon Musk's comments on Bitcoin triggered it. Many crypto investors have been calling Elon Musk a market manipulator, as a large number of people around the world have lost millions of dollars because of his comments. However, the crypto market seems to be recovering from its week-long crash today. Many coins such as Matic, Ripple and Cardano are seeing significant gains. Bitcoin, Ethereum are also up from their lowest price this week. Many crypto groups on Reddit believe the crypto market today is looking bullish. 


DISCLAIMER: The information provided on this website is for educational and entertainment purposes. The information provided on this websites does not constitute investment advice, financial advice or trading advice. Republic World does not recommend purchasing any cryptocurrency. Crypto markets are highly volatile and crypto investments are risky. Readers should do their own research on cryptocurrencies and consult their financial adviser before making any crypto investments. 

 

IMAGE: SHUTTERSTOCK

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Published May 18th, 2021 at 11:28 IST

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