Today witnessed a third consecutive day of losses in the crypto markets.
Some reasons include:
Bitcoin is up 286% for the year, but has seen nothing but losses for the last month, but in recent days this has increased crescendoing with record losses today... but why?
Bitcoin doesn't operate in a vacuum. Placed upon the substructure of the wider stock market Bitcoin has not actually changed in its value or content, but rather suffered at the mercy of a wider market adjustment.
Sometimes crypto enthusiasts forget that this market is subject to various changes within both the industries, service, manufacture and fosile fuel industries. Therefore it isn't a place for tourists, but rather a hazardous endeavor as all investing can be.
To the point the first and biggest reason for the recent dip has been a perfect storm (of sorts) in the financial world consisting of state governments, decentralized communities, and regulations and even famous entrepreneurs which just can't seem to get their message across "clearly" and without abmiguity.
The SNP, Dow, and NASDAQ all lost this years gains in just a few days, due to various wider changes in the market.
This is out of the scope of this article, however merits further study and certainly affects the overall crypto market which is built upon the traditional markets.
The crypto markets were further impacted by other more blockchain focused yet still unrelated events such as:
- Elon Musk's bungled SNL appearance hugely impacted the market sending Bitcoin and Dogen into their first troubles.
- Then the US governments announcements of investigations into Binance and Binance related companies, followed China's announcements that it will also be investigating Binance, and introducing new rules to prevent certain types of trading such as banning the use of crypto for the use of payment. Turkey also followed suit sending Bitcoin down further.
- Followed by the constant rant of right wing, and online anti crypto 'gloom and doomers' who generally hate cryptocurrency, decentralized finance, and the communities that support them.
- That investors would flee to calmer waters is something that goes without saying, but the better question we should ask should be:
Are cryptocurrency markets still healthy and sound investments?
I believe that the answer is absolutely YES. While we may not know exactly where the bottom of this current dip will end, we do know that it won't last long, whether or not Bitcoin is accepted as payment by Elon Musk.
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