Looking at the situation through which the market is passing through it could create skepticism that if it’s momentarily or going to remain for long
Almost every other digital asset in the cryptocurrency market, including bitcoin, ethereum, and the host of many popular altcoins, has seen a historic dip on Thursday. That day the overall crypto market had lost a sum of almost $600 billion of its value in just a week. Such situations create doubts regarding the digital assets that current tanking might be just another part of the notorious volatility of crypto valuations that evidences it to be a bubble inflated by a frantic rush into the investment of the digital assets while the worst of COVID-19 pandemic that might be bursting.
For the first time in the last sixteen months, the top cryptocurrency, bitcoin, has fallen to almost $26,000 during the massive sell-off in the cryptocurrencies that resulted in the removal of over $200 billion from the entire crypto market in a single day. On Thursday morning, the bitcoin price plunged to $25,919 as per the data, that markets that the flagship cryptocurrency has sunk below the level of $27,000 for the first time since 26th December 2020. Since then, bitcoin has somewhat walled off the losses it faced and was trading at around $30,812 while recording a gain of more than 13% in the past 24 hours.
As per CNBC, Ethereum (ETH), the second-biggest cryptocurrency, tanked while going as low as $1,719, which has fallen for the first time since July 2021 beneath $2,000. However, while making a recovery, ETH has been trading at about $2,119 after making a raise of more than 14%.
While meditating on cryptocurrency transactions and acting as crypto investors portals that were riding high following the crypto performances, Crypto exchange platforms have also followed it through their lows. One of the leading cryptocurrency platforms in the US, Coinbase, during the last week has lost almost a half of its value while including its biggest drop in 24 hours on Wednesday. On Wednesday, the share price of the crypto exchange has fallen by 26% to approx $53.7 per share, which was thirteen months after its initial public offering ago at the price of $429 per share.
An analyst at Raymond James who covers Coinbase, Patrick O’Shaughnessy, in a note to its clients, acknowledged in the firms there was a debate going on over whether the crypto market remained in its typical funds or if the bubble of crypto post-pandemic was deflating.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/05/13/the-reason-behind-the-bitcoin-crash-is-it-market-abnormality-or-the-bubbles-bursting/