Sunday is the day when the stock markets are closed, but for the crypto traders every day is open. The crypto market trades every day and 24/7. On the Sunday morning in the Western world where most crypto traders exist, the market opened with strong bears ending in a crash.
The entire week has been devastating for the crypto enthusiasts. After Elon Musk ditched on Bitcoin, the market for every crypto has been red. From the current prices on CoinMarketCap we can see the following data:
|Name||Price||7 day %|
|Binance coin||$273.18||48.10% down|
|Doge coin||$0.31||37.11% down|
Note that these are some of the highest market value coins. The collective losses accumulated from all the bears was more than $800 billion which vaporized from the market. As reported by Forbes, the total market value had peaked around $2.6 trillion which has nearly halved in a week. The Tesla stock registered as TSLA is also falling. The stock crash has cost a few investors $128 billion already.
The biggest reason for the fall of crypto was the ‘Musk factor’. Elon Musk had been pumping crypto for nearly three months. He finally ditched Bitcoin high and dry, which led to the severe crypto decline in a week. Another prominent person in this is Ark investor Cathie Wood who had been bullish on Bitcoin, she still believes that Bitcoin will rise in price.
The Chinese regulators announced tighter regulations on Bitcoin and just every crypto in general. This led to further tumult among people and more selling occurred. A few other countries like Korea have also positioned themselves on crypto.
More than anything this has exposed just how fragile the crypto market actually is. The positioning of China or India is appreciated as no nation wants one foreign individual playing around with memes and affecting the market. Moreover, these are Asian countries, the crypto investors here may be unaware of the chaos due to the time difference. Cryptos like Bitcoin have fallen nearly half from their top positions in not much of a timespan.
The dreams of crypto being the next big thing are fading. The investors believing in intrinsic value of assets are being proven right once again. Cryptos can work if they come with something new to advance the society but if it remains as a fancy number on a screen, it will tumble.