Cryptocurrency has been the biggest target in the market recently, with Bitcoin tumbling down to $32,000 recently.
This is down 50% from its high during mid-April of around $64,000. A staggering $1 trillion of crypto has been wiped out since the crash. This comes after a series of unfortunate events for the entire crypto market, including Elon Musk’s decision to disable Tesla purchases using Bitcoin, citing environmental concerns regarding the mining process.
In these two weeks, China has also largely cracked down on cryptocurrency mining as well, citing the same concerns as Musk did. Many large cryptocurrency miners have since stopped all operations within the country after the crackdown. It is largely considered that China is the biggest crypto-mining market in the world, which means significant damage to the crypto market as a whole.
To be fair, Bitcoin has been through an extremely turbulent history. Dips up to 80% are not foreign to the currency if you remember the bloodbath back during the crypto crash of 2018. After reaching highs of nearly $20,000 during late 2017, Bitcoin broke support at $4,000 about a year later. Many analysts point toward the speculative nature of the currency, where traders largely struggle to understand the technology behind it. This led to a large cryptocurrency bubble that was bound to break eventually.
But during Monday’s trading session, Bitcoin was able to bounce back temporarily from its trading woes. As of Monday morning, Bitcoin saw prices above $37,000 rising 4% for the day. Ethereum, the second biggest cryptocurrency by market cap rose nearly 10% for the day.
This may be the beginning of a consolidation phase, but many problems still plague cryptocurrency. Janet Yellen has previously voiced her discontent with cryptocurrency technology, citing the anonymous nature to enable money laundering and terrorism. Crypto whales are also a large concern to the stability and future of the coin. All in all, there are still countless issues that crypto will have to shore up before gaining more support.