If you are active on the Internet, you must be well-aware of everything that has been going into the crypto market in the past 2-3 months. Bitcoin, which is the world’s most popular and valuable cryptocurrency, faced a drop of over 26.7% on 19th May. The downfall of bitcoin started from $43600, and it got as low as $31900.
The next day, bitcoin showed some positive recovery, and its price went up to $38136. The downfall of bitcoin started after the CEO of electric car manufacturer Tesla, Elon Musk, announced that his company is stopping accepting bitcoins as a payment method. Surprisingly, few weeks prior to the announcement, he tweeted that Tesla has bought bitcoins valuing over $1.3 billion, and after making such a huge investment, he decides to withdraw his hands from the cryptocurrency.
It had a massive impact on the mind of bitcoin investors, and an enormous number of investors started selling their bitcoin investments, which increased the supply of crypto in the market, and its price plunged rapidly. If you are looking to make some money with bitcoin trading, Bitcoin Circuit is the perfect platform.
Things become worse for bitcoin when China placed a new ban on cryptocurrency transactions. It restricted the financial companies to provides services for crypto transactions and also warned the users for trading bitcoins. It all started with a tweet of Elon Musk, and now it has become difficult to stop the downfall of bitcoin. However, bitcoin recovered a bit and stood at $38000 on 20th May.
Bitcoin tweets harmed Elon Musk too
The tweets by Elon Musk irrefutable bruised the market value of bitcoin, but it also has a considerable impact on his personal wealth. Tesla prices fell to a great extent, and Elon Musk himself slipped from the position of the world’s second-richest person, and all of that is because of his involvement in manipulating the bitcoin market.
Musk’s recent tweets showed some signs that he might sell off all the bitcoin holdings that value over $1 billion, but he himself posted on Twitter and stated that his company had not sold any of the bitcoin holdings. It again had a significant impact on the crypto market, and bitcoin’s value boosted once again and recovered a bit from the past downfall.
Indian bitcoin market gets affected by FUD
FUD stands for Fear, Uncertainty, and Doubt, and it affected that bitcoin investors in India on 19th May. It was the primary reason that the world’s largest cryptocurrency witnessed the biggest fall in a single day in more than a year. A day later, the announcement came from Elon Musk about his company no longer accepting bitcoin. It again took a toll on the bitcoin market, and the coin reached $32000 but soon recovered and reached $39000.
The crypto market is already highly unpredictable, and when it got combined with the fear and doubt in the mind of investors, the market crashed, and bitcoin tumbled down. Especially, the Indian crypto market got affected a lot as a few of the top crypto trading platforms in India crashed due to the heavy traffic followed by the sudden fall in the price of bitcoins. The platforms couldn’t handle it and cracked, which made the investors face a lot of problems.
Is it the right time to invest in bitcoins?
Bitcoin has fallen from its peak and is currently sitting around $38000. So, there are numerous investors who believe that it is the perfect time to invest in it, according to the buy low and sell high trading strategy. According to the experts, you can invest in bitcoins, but before that, you must do proper research and learn about all the ins and outs of the crypto market.
It is an excellent opportunity for long-term value investors, but the risk must be calculated. You must make a disciplined investment in bitcoin and has a particular set of rules that you shall follow at all costs. There are several strategies that you can use to lower the risks and maximize the profits, and some of them are SIPs and rupee cost averaging, etc. It will help you to pass through that high price volatility and make some gains over the long term.
