Cryptocurrency is the most popular topic nowadays, and after the bloodbath seen in the crypto world, people have started fearing a bit while investing in cryptocurrency. You must have heard about the crypto crash that occurred in May 2020, but you surely won’t have complete knowledge about it. You can click here if you want to start with bitcoin trading and make money. If you want to know some insider stories and the reasons and after-effects of the crash, you can read below.
All cryptocurrencies on the downfall
Cryptocurrency is considered to be one of the most profitable investments as its history has shown some massive positive price fluctuations and helped the investors to earn good profits. But the month of May has not been good for the crypto investors as the biggest cryptocurrency; bitcoin fell by over 27% and reached $34224. It is quite surprising as the downfall started after bitcoin reached its all-time high of $60000 in April. Bitcoin is highly influential crypto also as any fluctuation in the price of bitcoin has an impact on other cryptocurrencies also. So, following the plunge in bitcoin’s price, Ethereum also declines by over 46% and fell to $2000 from $3730. If we talk about new cryptos launched in the market, such as dogecoin, it also experienced a downfall as it came down from 52 cents to 31 cents which is a fall of 39%.
Bitcoin faced a massive drop in its market value, but along with it, other major cryptocurrencies in the market also got affected by the market crash and lost a lot of value in less than seven days. If we talk about figures, 7459 cryptos faced a plunge of over 33% in their value. The crash made the cryptos face a loss in their market cap as earlier it was $2.25 trillion, but now it is $1.50 trillion. The total loss faced by crypto investors is estimated to be around $748 billion. Bitcoin’s price fell by 27%, and Ethereum plunged by 46%.
The market crash triggered a global sell-off
No one expected the crypto market to crash like this, and a sudden decline in the price of some of the top cryptocurrencies such as bitcoin has triggered a global sell-off. Most of the investors got panic and sold off all their investments to minimize the losses. A line of events has been responsible for all the ups and downs in the crypto market, and it all started with the Tesla owner, Elon Musk. In April, Elon Musk announced that his company has purchase bitcoins worth $1 billion and now people will be able to purchase electric cars using bitcoins. It attracted investors towards bitcoins, and its price started rising. In mid-April, the price of bitcoin reached its all-time high and touched $60000.
A few weeks after the boom in bitcoin’s price, Elon Musk posted a tweet in which he announced that his company would no long accept bitcoin payments. He said that bitcoin mining has a huge impact on the environment; he doesn’t support anything that causes harm to nature. This tweet bruised the market price of bitcoin heavily, and it dropped drastically. Later, Chinese authorities advised their banks strictly to stop offering any kind of cryptocurrency services and placed a ban on crypto transactions. It was a huge blow to the already struggling market of bitcoin, and it increased the pace of its downfall, and bitcoin came as low as $34000.
Elon Musk has been manipulating the market
Elon Musk’s tweets have caused havoc in the crypto world, and the fluctuations caused in the market due to his tweets have made numerous investors face massive financial losses. So, to show the frustration and anger about the influence of Musk on the crypto market, a new cryptocurrency is created, and it is named STOPELON. The funny thing is that after the crypto was created, its value also went up by over 1000% in few days. The creators of STOPELON claims that it is a cryptocurrency that will not be affected by any tweet of Elon Musk, and he will not long be able to manipulate and control the market.