Crypto market is now down to $1.6 trillion after a brutal downfall!
After experiencing an exponential growth of $2.4 trillion in value, the crypto market now tumbled down to $1.6 trillion in the downfall now being experienced by the crypto industry.
A mind-boggling drop of over $800 billion affected 7,000 tokens. Last Wednesday, Bitcoin fell down below $31,000 but made a slight recovery. It hovers at around $38,100 as of now but it is still down by 23.3% in the last week.
Meanwhile, Ethereum fell hard after breaking the $4,200 mark this month. As of now, it trades at around $2,480 and it is down by 36.7% in the last seven days.
China’s Effect
Last Tuesday, China imposed new regulatory rules about cryptocurrencies. Then after announcing the ban of financial institutions and payment companies from giving crypto-related services and transactions, there has been a rage of panic-selling of Bitcoin. This has become one of the factors that decline the price of the cryptocurrency.
China’s warning to investors against crypto trading also shocked the crypto market, now its effects obviously show up.
Elon Musk’s Frenzy
The Tesla CEO is now the only man who wrecks the crew for Bitcoin and other cryptocurrencies. His actions contribute to both the rise and demise of Bitcoin, and because of it, its downfall affects the whole crypto market.
Musk included #Bitcoin on his Twitter bio last January 29, 2021. This helped spike the price from $32,000 to $38,000. Ever since then, Musk has been giving a bit of love for the largest cryptocurrency.
However, his announcement about Tesla’s stopping acceptance of Bitcoin as payment, referring to negative environmental impacts of its mining process as the major reason. This announcement quickly sent Bitcoin crashing and leading to a massive loss for the crypto market.
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