Plunge in Bitcoin & Effect on Cryptocurrency

Recent crypto crash

It will be worth noting that the falling of cryptocurrency reinstates the fact that these are volatile assets. The current melting of the cryptocurrency is not attributed to any single isolated event. It is the cumulative outcome of uncertainty and confusion on the part of cryptocurrency traders. The contributing factor to the uncertainty can be the digital-asset policy of China, which implies active regulation of digital asset utilization. On the other hand, Elon Musk’s recent announcements stated that Bitcoins could be used for payments at electric vehicle manufacturer Tesla until the cryptocurrency becomes more environment friendly. Tesla has been a key influencer in the popularity of Bitcoins; with the shift in the primary investors of Bitcoins, the inclination towards more traditional options like gold is gaining prominence.

Price trend of Ethereum

Followed by the Bitcoin crash, the prices of other cryptocurrencies like Ethereum and Dogecoin were also off by 22% and 25%, respectively. The drop in Ethereum was most significant. It fell to $1850. Since January, this drop has been the weakest, when it was down by 28%, reaching a value of $2439. This drop of Ethereum was most significant after March previous year. However, it is important to note that Ethereum has been a choice of investors due to its accessibility and potential for long-term growth.

Plunge in Bitcoin & Effect on Cryptocurrency

Wiped off the value of cryptocurrency

Followed by the announcement of Elon Musk stating that Bitcoins will not be used at Tesla, billions of dollars were cleared out of the cryptocurrency market. Before the announcement came on Wednesday, the cumulative value of the cryptocurrency market was held at $2.43 trillion. After the announcement at 6 pm, the market value was down to $2.06 trillion, clearing out a sum of $365.85 billion. The downfall further continued to Thursday, with another clearing of $290 billion followed by the tweet of Elon Musk.

Cardano trend

The current low value of Cardano makes it a good candidate to boost future competition. Cardano holds the prospect to come at par with the values of Ethereum and Bitcoins. It is expected to reach $10 by this year-end, if not by 2022 latest, compared to its current value of $1. With its current token trading at $2.16, Cardano holds some promise to boost the cryptocurrency market in the near future.

Plunge in Bitcoin & Effect on Cryptocurrency

Is it over for Ethereum?

Ethereum holds the promise of gaining back its value. Although Ethereum has dropped by 22.7% in the last 24 hours, it has showcased a hike of 223.6% since the beginning of this year. However, concerns remain that the cryptocurrency market may face further downfall before Ethereum can build back its value. However, expert predictions on Ethereum suggest $5461 by the end of 2021 and reaching a peak at $10,286 by October 2022.

However, the Ethereum price prediction suggests that the coin will hit $5461 by the end of 2021 and reaching a peak at $10,286 by October 2022.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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