Bitcoin is a digital payment system and a payment unit of the same name. First bitcoins appeared on the network in 2009, and a year later, the cryptocurrency was first used for payment. The bitcoin rate is very volatile and has experienced many ups and downs over the years. That’s why a lot of people today wonder ‘Why is crypto going down?’.
Not so long ago, on April 14 of this year, Bitcoin reached an all-time high of almost $64.9 thousand, and now it’s experiencing a decline. So, why is crypto going down? Today, we’ll try to find out!
Why Crypto Market Going Down: Analyst Estimates
Why is cryptocurrency going down? Well, the recent fall in Bitcoin price was commented by a number of analysts. Crypto experts emphasized that Bitcoin is a brand worth a lot of money solely because the myth of ‘digital gold’ has been created around it.
On May 19, 2021, Bitcoin fell in price below the level of $31 thousand and was close to the mark of $40 thousand. Among the reasons why crypto market going down experts named another tweet by Elon Musk. The American entrepreneur said that the Tesla company will no longer sell its cars for Bitcoin.
Why All Crypto Going Down: Crypto Prices Today
On Wednesday, June 9, Bitcoin was traded around the $35.1 thousand mark on Binance exchange. According to trading data, the price of Bitcoin is $37,943 as of today. At the same time, there is a fall in price of other cryptocurrencies, including Ethereum (-8.14%) and XRP (-8.19%). What are the reasons why all crypto going down as well?
Well, the decrease may be associated with a further strengthening of crypto regulation in China and a decrease in interest from investors. That’s why the phenomenon of crypto going down isn’t surprising. Serious falls in Bitcoin price aren’t uncommon. In 2011, the first cryptocurrency in the world collapsed from $32 to $2, and in 2014, it fell from $1,000 to $170.
Forecasts for a further decrease in Bitcoin price sound very different today. In a review by Scott Minerd, investment director of Guggenheim Partners, it’s said that the main cryptocurrency may be adjusted as early as this year to the level of $20 thousand. Meanwhile, with historical parallels, it becomes clear that Bitcoin risks collapsing to $4,000.
Price of Crypto Going Down: Key Reasons to Know
So, why is crypto going down today? How did crypto experts explain the fall of Bitcoin in the spring of 2021? Let’s consider the main reasons!
- It was reported that the U.S. Treasury is about to tighten regulation in the cryptocurrency market;
- Crypto enthusiasts hoped for a greater impact from a direct listing of Coinbase shares on Nasdaq exchange;
- Chinese mining provinces faced a power outage and Bitcoin’s network hash rate eventually dropped.
Why is crypto going down? How do you guys think? Feel free to share your ideas in the comments!