Bitcoin is the first-ever cryptocurrency of the marketplace and conferring the ground concept of bitcoin; there was an exceeding extent of altcoins in just a nominal time. According to few robust sources, there were more than 9000 cryptocurrencies in the marketplace by the end of March 2021 ahead of the Bitcoin market crash.
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The arrival of altcoins affected the market cap of bitcoin. However, the value of bitcoin continued to rise. Several factors influence Bitcoin, and this is one of the prominent reasons why bitcoin is exceedingly volatile.
The groundbreaking forecast subjected directly to the entire cryptocurrency industry arrived that bitcoin and other cryptocurrencies crashed. Authentic websites like crypto crash fortune can help you in getting more gigantic results in your bitcoin expedition.
The bitcoin market crashed due to few explicit reasons. Still, most of the crypto investors are blaming a single aspect responsible for the cryptocurrency market crash, and no one is familiar with the actual factors that led to the cryptocurrency market crash on the 19th of May.
Here is everything you should need to know about why the cryptocurrency market crashed recently; let’s look.
Bitcoin and Musk Conundrum!
The bitcoin market crashed three times in total, and every glance of the market crash shattered the value of bitcoin to an exceeding extent. The mere good news is that bitcoin managed to escape every choky situation.
In 2020 March bitcoin market crashed. However, the instance of pandemic and worldwide lockdown assisted average and middle-class investors to acknowledge bitcoin existence. In a nominal time, bitcoin acquired an exceeding extent of attention of these normal investors.
By the end of 2020, bitcoin acquired the attention of Elon Musk. In a clubhouse room, Elon musk even praised bitcoin and stated that bitcoin is in the optimistic future. Subsequent to few incidents, tesla motors invested a considerable amount of funds in bitcoin. The announcement of Elon musk correspondingly skyrocketed the value of bitcoin.
In 2021 March, Tesla motors announced to accept bitcoin as a payment method. This tweet also enhanced the value and acceptance of bitcoin extremely as Elon musk is the idol of many people. Few crypto watchers claim that bitcoin touched its peak price of this year just due to the tweets of Elon musk. In a nutshell, Elon musk was alleged for pumping bitcoin extremely.
However, no one knew that the reversal tweet of Elon musk is just at a stone-throwing distance. In the second week of May 2021, Elon Musk tweeted that tesla motors will no longer accept bitcoin as a payment method.
The tweet addressed the electricity consumption and fossil fuel emission of bitcoin mining and its severe impacts on the environment. In a nutshell, Elon musk stated his concern towards the environment due to bitcoin mining effects. The tweet of Elon musk adversely affected the value of bitcoin, and bitcoin plummeted.
China Crypto Regulation!
China has implemented harsh crypto regulation rules multiple times in the country. Recently the jointed committee of China correspondingly announced a crypto regulation or, say, crypto crackdown in the country. The fact might amaze you that the crypto crackdown did not ban investing and holding bitcoin as an investment asset. However, still, there was an exceeding extent of chaos in the cryptocurrency industry after the announcement of China.
The crackdown majorly addressed banning financial institutions rendering services regarding altcoins and bitcoin to the new users. All the more crackdown signaled on banning the acceptance of bitcoin as a payment method. In a nutshell, China’s announcement of cryptocurrency crackdown correspondingly led to the cryptocurrency market crash.
Crackdown correspondingly banned bitcoin mining, and the bitcoin mining ban in China has befitted tons of miners elsewhere as the centric domination of Chinese mining pools in the bitcoin mining industry is just mitigated.
IRS and UK on Binance
This is one of the utmost underrated reasons alleged for the bitcoin crash, but it was noticed that the IRS investigation on Binance was correspondingly responsible for the cryptocurrency crash or bitcoin carnage. Binance is the largest cryptocurrency exchange that was introduced in 2017; binance is equipped with its own cryptocurrency named Binance coin.
The digitalized coinage is also utilized as the token or transaction fees of carrying out transactions utilizing Binance exchange. As per the robust sources, binance does not have anything suspicious against it. The fact might amaze you that recently United Kingdom financial watchers banned binance market limited as it was not registered with an explicit authority of Britain.
Is Cryptocurrency Market Crash a Good Time to Invest?
According to proficient analysts and researchers, bitcoin has been restored in a phenomenal manner subsequent to every cryptocurrency market crash. Subsequent to this cryptocurrency crash, bitcoin was headed on the restoration route in a nominal time. All the more, every significant player of the marketplace is still standing with bitcoin even after the crash; you must consider investing in bitcoin, a robust source said.