Cryptocurrency has been referred to by many as the “Gold of Tomorrow.” It means that people no longer require storing their riches in the form of ground whose interests grow so slowly. Instead, more and more investors are advocating for cryptocurrency, especially Bitcoin.
Today, the investment song is changing as many are aware of the volatility of cryptocurrencies. You can always try playing games or try your luck in getting True Blue casino no deposit bonus codes with the condition of win or lose. Only two sides of the coin can become the result of the bet. Also, cryptocurrencies and especially bitcoin, can either multiply your investment or reduce it.
Bitcoin News to Discuss
- Why the recent falls in Bitcoin stock?
- Was the fate of Bitcoin the same as other cryptos?
- Is bitcoin investment a risk-off trade?
- Rise of Dogecoin.
Why the Recent Falls in Bitcoin Stock?
Bitcoin, as the primary currency, is dependent on endorsements by big companies. However, any negative headlines associated with any of these companies can result in dramatic falls in stock.
According to CNBC, Tesla’s CEO Elon Musk had announced the company’s intention to purchase cryptocurrencies worth around $1.5 billion. Before this, the CEO had indicated the company’s unwillingness to continue with Bitcoin product purchases for their vehicles back on May 12.
Their main concern was the computational process “mining,” citing potential environmental concerns. However, mining is a simple process that involves the use of high-powered computers are used to solve complex mathematical puzzles. The method enables companies and individuals to transact using currencies such as bitcoin.
The CEO comments resulted in a wipe-out of over $300 billion worth of cryptocurrencies from the market. Bitcoin is the most popular cryptocurrency coin, dropped in value by 30% to $30,000 on Wednesday, May 19. Investors had already begun selling off their cash in the previous week and the drop was a blow to the coin. It is the first time that Bitcoin has traded in such low amounts since January. However, the fall did not last the whole as the prices had risen to $38,205.49 by 3 pm Wednesday.
Was Fate the Same as Other Cryptos?
It seems Wednesday was a bad day all around in the cryptocurrency industry. Many other crypto coins had a plunge, including Ether. It is the cryptocurrency or digital currency that supports or powers up the Ethereum blockchain. According to the coin metrics, the cryptocurrency went down by 22% and sold at $ 2,620.97. Dogecoin’s most recent entry into the crypto market and regarded by many investors as a “joke”, fell by 25%. The coin that is not selling quite well in the market went down to 36 cents.
However, the coins were not the only ones affected in the market. Coinbase considered the “Cryptocurrency Stock Exchange” also went down on Monday before the plunging in the worth of the cryptocurrencies. The exchange platform that had gone above $400 in its initial trades back in April experienced a significant drop of $220 on Wednesday.
Also, the direct listing for the exchange platform matches that of the highest sales in Bitcoin history. To add more injury to the fallen currencies, the JP Morgan report indicated that corporate investors expected for future-based crypto contracts were reverting to the use of Gold.
Is Bitcoin Investment a Risk-off Trade?
If the fall in stock prices were an isolated incident affecting only crypto, then yes, bitcoin would become a risk-off trade. However, many industries are experiencing significant challenges in the past few months and the whole year, including the gambling industry and various games like True Blue bingo.
Technology growth stocks that continued to witness growth during the pandemic are now struggling. For instance, the Nasdaq Composite closing numbers at the stock exchange fell by 6.9% that Wednesday. Another company, the Ark Innovation ETF, was worse off with a fall of 30% compared to its high numbers back in February.
Ulrik Lykke, an executive director at the ARK36 a cryptocurrency hedge fund, highlights that cryptos are very volatile. All the troubles the market witnessed in the past week are easy to overcome. He states that Bitcoin has faced more since its establishment and has easily braved all the challenges. “The loss of $300 billion may be astronomical, but such moves are not unheard of in this market,” says Lykke. Also, the Bitcoin amount is still higher with a 30% to date for the past year or 12 months, which is pretty stable.
Financial Regulatory Concerns
The cryptocurrency industry has joined the more significant financial market and plays a major role in the economy. Therefore, since its entry, it has undergone major regulatory checks and scrutiny from major industry regulators. Government and local authorities are also bearing down on the industry and companies conducting the crypto businesses.
Bernstein’s Harshita Rawat indicates that the government’s outlook and perception, including the recent crackdowns, are the main reasons for the drop and the reduction in cryptocurrency trading activities. He says that many countries view cryptocurrencies as a threat to their current monetary systems plus currencies.
It is evident in china’s efforts to develop its form of cryptocurrency. The country has set down harsh rules against the current digital currencies to protect its citizens from the recent market volatility.
The government has a ban against cryptocurrency trading services in the country, limiting the capabilities of financial companies. Gary Gensler, the US Securities and Exchange Commission chairperson, indicates that consumers should have ample protection while operating in the crypto markets. However, regulators such as governments and other financial institutions should remain neutral regarding the technologies in use.
Rise of Dogecoin
Dogecoin is one of the most recent cryptocurrencies to enter the crypto market. The coin that started as a joke has now garnered wider popularity around the world. CEO Musk’s comments may have hurt the smaller coins by refuting the credibility of the cryptocurrency market.
However, the smaller coin operations were not that affected by the drastic change in corporate interests. It shows that people are now interested in the trading of varying crypto stocks rather than corporation politics. Dave Portnoy, the founder of Barstool Sports, purchased the “Safenoon” crypto coins worth $40,000. More and more interest is delving into smaller cryptocurrency coins joining the market.
The latest bitcoin and cryptocurrency news vary with each day, hour, or minute. Within this period, the stock price can rise to the highest or plummet to the lowest. Many factors cause the changes in pricing, including the economy’s shift, comments from major players in the industry, and competition.
It is essential to identify these factors and try to stabilize the market for Bitcoin less risk massive losses once more.