Crash on Bitcoin and other cryptocurrencies
The crash and collapse of the market on Bitcoin and other cryptocurrencies. Is this the end of the boom?
5/19/2021 will go down in the history of the cryptocurrency market due to one of Bitcoin’s deepest crashes. The price of one day dropped from $ 42-43,000 apiece to $ 30,000. In fact, it all happened in about 4 hours between 12 noon and 4 pm when the panic broke out. Moods slackened when Elon Musk said Tesla would not accept BTC payments due to its environmental impact. Then the Chinese authorities banned financial institutions from making and allowing payments in Bitcoin and other cryptocurrencies. The market reacted quickly with a sale. The red has basically turned into all known cryptocurrency projects. Unfortunately, the authorities of the People’s Republic of China anticipate further difficulties, including the banning of trading and trading in cryptocurrencies and their mining.
Can Bitcoin and other cryptocurrencies still return to the uptrend?
Potentially they can. However, in my subjective opinion, it is unlikely. The mood on the market is dominant, and these have been very weak in recent days. The situation will be aggravated by new young investors who bought Bitcoin on the hill for over $ 50,000 apiece. In addition, the media will contribute to the building blocks with further negative articles, which will be a warning that buying Bitcoin can be extremely risky at the moment. I sign it with my arms and legs. This is not a good time to buy cryptocurrencies because most of them are in downtrends and it can take a long time to get out of them. Thus, personally, I strongly advise against investing any money. At this point, it’s better to stay out of the market and watch what happens. A return to growth is possible, but I personally estimate the chances of it at 5-10%. In my opinion, the cycle has ended and we are entering a 2-year period of bear market.
Is this the end of the boom on Bitcoin and altcoins?
On Bitcoin, rather, as I have already mentioned. This annual boom lasted about 2 times longer than the previous one. Thus, the probability that the bubble bursts before our eyes is, in my opinion, very high. But what about altcoins? Here a lot depends on individual projects. It is possible that some of them will fall into long stagnation and lateral or downward trends. It is possible that some of them will maintain their growth trends or gradually return to them. Which of them will it be? It’s hard to say unequivocally. I once prepared my subjective cryptocurrency ranking for you. It is possible that one of these projects will stand out above the others. At the moment, most are recording deep drops, although many believe that this may be a good time to buy Ethereum because this project has an interesting future ahead of it. As I mentioned before, I personally advise against any investments in this market, as they may end up with deep and long-term losses.