Crypto world comes back to life after an enormous crash!
The crypto industry is now set for a slow recovery. However, its fortunes are still easily shaken.
After a dramatic washout in the markets last Friday, the crypto market is slowly crawling back to life. Both Bitcoin and Ethereum are up by about 2.5% in the last 24 hours and Binance coin is up by 4.6%.
Smaller altcoins report even greater increases. Just yesterday, BitTorrent coin increased by 35%, Nano by 23% and WazirX by 21%.
Dogecoin, one of the biggest altcoins, also fared well. It is now up by 17.39% yesterday. But at $0.27, Dogecoin is still a way down compared to earlier this week; today, a single Dogecoin is sold for $0.4.
DOGE started its decline last Tuesday, April 20. It’s price rose by several hundred percent in the days prior to 4/20 after fans labeled the date as Dogecoin day, and tried to fuel the price to $1.
Its latest high price is a product of the air created by its fans, however, its subsequent decline shows that Dogecoin day was not interesting enough to hit its ambition.
Why did the market crash?
The temporary sea of green marks a brief and limited recovery from an enormous crash that wiped hundreds of billions of dollars from the global market capitalization of the crypto market.
Now at its price of $52,707, Bitcoin has fallen by about a third from it’s all-time high of $64,445, achieved last April 14. The newest crash started last Thursday, and many commentators connect it to US President Joe Biden’s proposal to double the capital gains taxes from 20% to 39.6%.
Biden announced last Thursday the plans to increase the capital gains for the wealthiest Americans. This pertains to the ultra-rich Bitcoin HODLers, since it would increase their tax bills if they sold their holdings.
“There is a lot of new capital that has entered the market, some investors are still on edge and unverified negative news can cause a lot of short-term damage. That is what we are seeing,”
Charles Storry, head of growth at DeFi index provider Phuture
The crypto market is very sensitive to the news. When Bitcoin’s price dropped by around $10,000 last weekend, traders attributed the drop to a single tweet from Indian financial newswire FXHedge. The tweet, ever since it was deleted, is said without evidence that the US treasury was about to crack down on the financial institutions.
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