• eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    0.18

    BTC/usd 15.674.99

    8.60

    ETH/usd 674.99

    13.60

  • eur/usd 1.1862

    3.95

    BTC/usd 15.674.99

    4.78

    ETH/usd 674.99

    11.37

Why the Sudden Drop In Crypto

CRYPTO MASSIVE CRASH

The massive crash in crypto such as Bitcoin, Ethereum, Ripple, Dogecoin, Shiba and other skyrocketing coins like Solana’s sol prices massive drop came as a surprise the to average investor. This maybe as result of profit taking , providing a buy opportunity to traders.

According to Forbes the crypto markers suddenly lost $250 Billion since Monday15 November 2021 due to catastrophic debt default in China pushing most digital currencies to the lowest levels. Jonas Luethy said this occurred after shares of Chinese real estate giant Evergrande plunged their lowest in 11years which posed a potential collapse to the broader market

According to Matt Brooks China ordered Bitcoin mining in Sichuan province to shut down completely which was another blow to cryptocurrencies. The Peoples Bank of China has effectively  banned crypto as illegal.

Alis Finnis is of the view that, among the number of changes that led to the drop which wiped billions one of the major reasons is the US Securities and Exchange Commission (SEC) rejecting spot bitcoin exchange-traded fund (ETF).

Bernstein’s Harsgita Rawat stated that this crackdown in crypto is a result of regulatory concerns in developing countries which view crypto as a threat to their fiat currencies and monetary systems. China banned financial companies from providing crypto trading services.

Alis Finnis is of the view that, among the number of changes that led to the drop which wiped billions one of the major reasons is the US Securities and Exchange Commission (SEC) rejecting spot bitcoin exchange-traded fund (ETF).

According to Jesse Poundnthis weakness is a result of temporary reversal in broader acceptance for cryptocurrency. More so JPMorgan noted that investors from institution moved to gold the traditional store of value from cryptocurrencies.

Alis Finnis is of the view that, among the number of changes that led to the drop which wiped billions one of the major reasons is the US Securities and Exchange Commission (SEC) rejecting spot bitcoin exchange-traded fund (ETF).

In addition, the drastic pullback followed negative headlines from Tesla CEO Elon Musk which lead the the massive drop. Bitcoin fell to more than 30%, Ether had more than 40% drop.  Elon Musk announced that Tesla would no longer accept bitcoin, due to environmental concerns.

Furthermore, the rise of crypto currencies like dogecoin which started as a joke could have reduced the credibility of cryptocurrencies.

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