According to reports, hundreds of billions of dollars have been lost as crypto currency market crashed in what many investors have termed unsuspected.
Earlier this week, the prices of major digital coins like Bitcoin, Cardano, Solana, and Ethereum all recorded high returns for investors – only to take a downward curve sharply. The unpredicted fall has affected the investment of many investors, with analysts saying that the losses are running into billions of U.S. Dollars.
Key Facts
In a report by CoinGecko, the current price of Bitcoin plummeted to about $60,500 this morning, downwards 8% from 24 hours earlier.
Other major digital coins like dogecoin, XRP, Ethereum, Cardano, Solana, etc., experienced the same fate and dropped drastically, falling between 7% and 10%.
In the report, the CoinGecko analysts stated that:
“Of the four most valuable cryptocurrencies by market capitalization—excluding the biggest, bitcoin, and tether, a stablecoin pegged to USD—ether fell 9.6% to around $4,300, Binance’s BNB 8.9% to $590, solana 7.5% to $225 and cardano 9% to $1.90.
“XRP, polkadot, dogecoin and shiba inu coin—the next largest cryptocurrencies by market cap, excluding another stablecoin, USD Coin—fell 9.3%, 12.4%, 8.8%, and 6%, respectively.
“The losses come as part of a wider rout in the cryptocurrency market, which is now worth some $2.76 trillion, according to CoinGecko, down 8.6% from the day before.”
The Key Background
The recent crash occurred just a few days after Bitcoin recorded what was regarded as a new record jump – above $69,000.
Reacting to the news, a top analyst was quoted as saying:
“The crash wiped many of the gains made throughout the pandemic, when the volatile market thrived due to numerous factors including an influx of retail investors, more options to trade digital currencies and the popularity of meme stocks and tokens driven by online forums on sites like Reddit and celebrity endorsement.”
The Lesson
To date, it is not clear whether the crypto currency market is crashing or if this is just a normal market fluctuation experienced in all financial markets. Also, it is unclear whether the crash resulted from China’s activities against crypto currency mining, which they said caused energy wastage and encouraged carbon footprint.
You will recall that China’s crackdown earlier in the year on mining saw many cryptocurrency miners flee the country in large groups. Many of them found their way to the United States and different parts of Europe.
