Bitcoin is the most popular and valuable digital currency in the world in terms of market and investment capitalization. While its price hasn’t been very attractive lately, the digital currency continues to dominate as more and more crypto investors invest in the bitcoin space. The year Bitcoin has taught crypto investors so far that “once a volatile currency, always a volatile currency”.
Since its launch in 2009, Bitcoin has ushered in a new era of blockchain technology and digital currencies. Bitcoin, which is often considered synonymous with the cryptocurrency market, had its highest price in April, which has halved today. But the sharp drop in prices hasn’t stopped crypto investors from believing in bitcoin. Even with the plunge, investors poured in more money, believing that bitcoin would survive “hard times and deliver remarkable returns. Bitcoin’s value is also extremely high, making it strong even when the market trend suggests otherwise. valued at $ 653 million as of May 30, 2021, well above Amazon founder Jeff Bezos’s net worth.
They are big and hard
Indefinite price swings are part of bitcoin’s daily routine. Bitcoin has faced severe volatility throughout its thirteen-year journey in the digital currency market. But what made the recent price swing differently was its sharp rally and sudden drop. After the skyrocketing prices, more and more investors and newcomers to cryptocurrency have invested more money in bitcoins. Since the beginning of the year, the cryptocurrency has more than doubled, peaking at $ 64,895 in April. But what made Bitcoin go crazy in such a short time? Elon Musk and the Chinese government! Elon Musk, a tech innovator, CEO of Tesla, and a former bitcoin supporter destroyed his reputation in the market with his tweet in April.
One day, out of the blue, Musk tweeted that Tesla would not accept Bitcoin payments for the purchase of his car, citing the environmental collapse that digital currency mining is causing. The Chinese government has banned its people from mining bitcoins due to the insane amount of electricity consumed. China extracts about 75% of the bitcoin mined worldwide. As the biggest player in the digital currency market, its unexpected ban has hit bitcoin prices with great force. Bitcoin price is currently at $34,000.
Meme with coins as a threat
The growing controversy over the fall of Bitcoin and the jump in the price of the meme currency could change the wind in the cryptocurrency market. Dogecoin, a digital currency born of memes and jokes, is doing well in the market. Even retail investors invested in digital assets in search of big returns. Fortunately, one thing that strengthened them was their relentless price, even when Bitcoin exploded. Since then, the asset has been liquidated. GameStop games have grown 1,000%, while AMC Entertainment has grown by more than 2,500%.
Altcoins are better than bitcoins
When we talk about altcoins, the first thing that comes to mind is Ethereum. Ethereum is an altcoin built on the sophisticated technology of the Bitcoin chain, which is why it is the second-largest cryptocurrency in the world in terms of large markets. Ethereum is launching more than 1200% to 702% of Bitcoin per year. When Bitcoin jumps, so does the cryptocurrency market, when momentum rises, most markets shrink together. Although there are exceptions, it is usually the last digit of the number. Fortunately, Ethereum and many other altcoins were at stake, avoiding the winds of Bitcoin’s collapse.
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