Bitcoin is irrefutable, the most popular and valuable cryptocurrency but the year 2020 has been a roller coaster ride for the biggest cryptocurrency in the world. Bitcoin’s value went through a lot of fluctuation within few months, and there were few things that played a significant role in it. Elon Musk is the first person who can be held responsible for all the chaos in the crypto market.
Moreover, changes in policies and regulations related to cryptocurrency by the Chinese Banking Association also damaged the bitcoin value. You can use any Official Site for bitcoin trading and earn profits. There are several important updated related to bitcoin’s downfall, and you can read about some of them in the following paragraphs.
Elon Musk brought the price of bitcoin down
If you are a crypto investor or even have the slightest knowledge about the cryptocurrency market, you must be aware of the massive fluctuations that occurred in the bitcoin market in the month of May. Elon Musk, the owner of Tesla, first tweeted that he has bought over $1.2 billion of bitcoin, and now his company is all set to accept bitcoin payments.
It boosted the confidence of bitcoin investors, and the marker went up. The price of bitcoin touched the mark of $50000 and was all set to increase further. But after that, Elon Musk tweeted gain and announced that Tesla would not be accepting bitcoins anymore. He believed that bitcoin mining has a huge negative impact on the environment, which is why he withdrew his support.
The few contradicting tweets about bitcoin posted by Elon Musk brought considerable fluctuations in the bitcoin market and made the investors suffer huge losses. So, to express their frustration and anger, a group of crypto traders have launched a new cryptocurrency named STOPELON. They have said that the crypto has been created to minimize the impact of Elon Musk on the crypto market, and they claim that the price of this crypto will not be affected by Elon Musk’s tweets.
A new trend in the crypto world
Earlier, the crypto world was simple and allowed investors to earn massive profits in a short period. But now, it has become too risky as it is now affected by several personalities and factors. Elon Musk has been controlling the market through his Twitter account as his single tweet led to a sudden increase or decrease in the price of a particular cryptocurrency.
Most of the new cryptocurrencies are of no use in the mainstream as they can only be used for trading purposes and make some quick gains. Experts are advising the traders that they should avoid using the traditional strategy of entering the market when the price is low and exiting when the price reaches the top. With the quick volatility noticed in the past few months, a proper plan needs to be formulated along with an effective risk management strategy.
Investors invested during the bitcoin dip, but it dipped further
Recently, when the price of bitcoin crashed after some tweet from Elon Musk, most investors thought it was the right time to invest, and buying low and selling high is the most basic rule followed by the investors. But it doesn’t apply to the crypto world, as the users who invested in the dip suffered losses as the dip kept dipping.
Bitcoin crashed by over 30% and deducted almost $500 billion from its top market value. It was a bumpy ride for the investors as initially; bitcoin went up when Elon Musk showed his support for the cryptocurrency. But after some time, he announced that he is no more supporting bitcoin, and it was the start of the nightmare for bitcoin investors.
Tesla boss backed up dogecoin, which took its price to the sky. He also claimed that he has been working with the developers of dogecoin for the past few years, which surely worked for Doge but had an opposite impact on bitcoin as it tumbled further and reached its 2-month low.
The crypto market crashed also led to the crashing of some of the top crypto trading platforms in India, such as WazirX. The heavy traffic on the website crashed it as after the bitcoin’s price dipped, everyone started to panic and wanted to withdraw their money as soon as possible.
