Cryptocurrency isn’t doing so well right now, with most major coins down more than 20% in the past 24 hours alone.
Why is crypto crashing today? Are we facing another round of crypto winter, or will the markets recover soon? This article will explain everything you need to know about why crypto is crashing today and if it will recover from this dip, so keep reading!
|why is crypto crashing and will it recover|
The reasons why crypto market is down
- One reason the crypto market is down today is because of the bearish trend that has been going on for a while now. This means that more people are selling than buying, which drives prices down.
- Another reason is that there has been a lot of negative news lately, such as hacks and scams. This makes people lose faith in crypto and want to sell off their holdings.
- Additionally, there is a general feeling of uncertainty in the market right now.
- Bitcoin broke below its critical support level at $50,000 this week.
- Wall Street banks are starting to worry about the long-term prospects for bitcoin.
- Elon Musk's Twitter account was hacked, bringing attention to the dangers of crypto scams.
- The Chinese government has been cracking down on crypto-related activity in the country.
- Cryptocurrency investors have been hit by a series of huge tax bills from the IRS that have caught many by surprise.
- The U.S. is considering new regulations on cryptocurrency trading platforms, which could dampen investor enthusiasm for the sector.
The reason behind fall in bitcoin prices
Bitcoin, the world's largest cryptocurrency by market value, fell sharply on Friday, dragged down by a sell-off in smaller digital assets.
The price of bitcoin tumbled more than 10% to below $50,000, its biggest one-day percentage drop since February. Ethereum and other major cryptocurrencies also declined.
The sell-off was set off by comments from U.S. Treasury Secretary Janet Yellen, who said cryptocurrencies were extremely inefficient and used mainly for illicit activity.
Most reliable cryptocurrency trading platforms
- Kraken - Kraken is a US-based cryptocurrency trading platform that was founded in 2011. The exchange offers a secure trading environment with a advanced features and charting tools.
- Coinbase - Coinbase is one of the most popular cryptocurrency exchanges and allows you to buy and sell Bitcoin, Ethereum, and Litecoin.
- Bitfinex - Bitfinex is a Hong Kong-based cryptocurrency exchange that offers margin trading and lending services.
Most reliable cryptocurrency trading platforms:
- Bitsquare (aka Bisq)
- CryptoGo (UK)
How to buy bitcoin with credit card
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Cryptocurrencies are often bought with fiat currencies, such as US dollars, but can also be bought with other cryptocurrencies such as Ethereum.
Who are the best long-term bitcoin investors?
When it comes to Bitcoin, there are a lot of investors who are in it for the long haul. Some believe that Bitcoin will eventually become a global currency, while others see it as a way to make huge profits.
Bitcoin's price is down again. So, who are the best long-term bitcoin investors?
There's one thing that all of them have in common: they believe in the future of cryptocurrency.
We're talking about people like Tim Draper and Fred Wilson, who have been investing in bitcoin and other cryptocurrencies since as far back as 2013. They're not just throwing money at any old project—they're putting their money where their mouth is, because they know that this technology is here to stay.
Tim Draper's prediction is that bitcoin will reach $1 million by 2022; which seems like an absurd number, but it's actually pretty reasonable when you consider inflation and the fact that there are only 21 million bitcoins available for mining. That means there will only ever be 21 million bitcoins—and if they keep increasing in value like they have been since 2009, then it's not so crazy after all!
It's not just investors like Tim Draper who are bullish on crypto either—there are plenty of other experts who think the same way about bitcoin's future prospects. Take Ethereum co-founder Vitalik Buterin for example: he has predicted that we'll see a "massive" drop in prices before seeing another boom period later on down the line...
How can I avoid scams while investing in cryptocurrencies?
Many people have been burned by scams in the cryptocurrency space. There are a few things you can do to avoid being scammed. First, do your research.
Make sure you understand what you're investing in and who you're giving your money to. Second, don't invest more than you can afford to lose.
Cryptocurrencies are volatile and the value could go to zero overnight. Third, use a reputable exchange or wallet. Don't store your coins on an exchange where they can be hacked or stolen.
In the end, it's really difficult to say. So many of the core values of crypto are changing and mutating that it can be hard to keep up with what exactly is happening from one day to the next. Some investors might decide that this is close enough for "good enough," and sit on their newfound gains in hopes that tomorrow will bring a better day.
But others might start seeking out other alternatives to capitalize on some of the volatility we see. In any case, hopefully this article helped shed some light on what's going on with this volatile market, and why you might want to become part of it. Good luck!