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29 May 2021

The Price of Bitcoin is dipping in its worst month in nearly 10 years


It is the worst month in the history of bitcoin and cryptocurrency market. Since 2017, Cryptocurrencies including Bitcoin, Ethereum, and Lightcoin have seen unprecedented growth, despite remaining extremely volatile.

Different financial institution has an opinion on the cryptocurrency market which have a market cap of around 175 Billion USD, the crypto sector continues to grow, as it continues to see wider mainstream adoption.

The price of one Bitcoin passed 15,000 USD across many exchanges today taking it higher than previous all-time highs.

Ethereum's 27-year-old founder says we're in a crypto bubble. It seems that the bubble just got bursted. However, it is too early to conclude.

The price of Bitcoin fell 8% Friday and have plunged about 36% in May — their worst monthly performance since September 2011.

There has been steady outflow of bad news that has sent bitcoin spiraling downward since it hit an all-time high above $64,000 in April.

Elon Musk, the CEO of Tesla (TSLA) has a fair share of the cause of the dip. He did an about-face on bitcoin, telling customers recently that the electric car giant will no longer accept bitcoin as payment for its vehicles because of concerns about the environmental impact of bitcoin mining, which is extremely energy intensive.

Though the unclean energy use by Bitcoin miners have been debunked with substantial evidence, it seems that the Musk’s tweet has other agenda.

Musk has since softened his stance a bit, agreeing — thanks to the prodding of software CEO and crypto evangelist Michael Saylor of MicroStrategy (MSTR) — to meet with the heads of several bitcoin miners based in North America to talk about energy usage concerns.

China also has stepped up its crackdown on crypto and the United States Treasury department has unveiled new plans to tax bitcoin more heavily while the Federal Reserve has hinted about the possibility of a digital dollar.

Also, this is not the first time China mention a crackdown on cryptocurrency. This has been stated in 2017, but the recent statement seems to be a reiteration of their stance on the cryptocurrency crackdown which was extended to Decentralized Finance (Defi)

This crackdown news and tweets may have been brutal for many cryptos enthusiast and investors, including day traders. The crash spilled over to other cryptocurrencies called altcoins. Binance coin, XRP and Polkadot have suffered massive losses this month.

Other cryptos, most notably ethereum — the second largest after bitcoin and the backbone for many popular non-fungible token (NFT) deals — have held up better. Ether has fallen only about 6%. Meme token dogecoin, which Musk has repeatedly tweeted about, is down slightly in May.

So-called stablecoins, such as Tether and USD Coin, which are tied to government-backed currencies, have lived up to their name and are flat for the month.

Bitcoin is notoriously volatile, and prices remain up more than 25% this year despite May's meltdown. So long-term fans, or HODLers as they like to call themselves, have been down this road numerous times before.

Peter Smith, CEO of Blockchain.com, has stated that, it is easy to be a crypto investor. It's extremely difficult to be a crypto trader. He runs a crypto research, investing and lending startup that is valued at $5.2 billion.

This is a very high volatility market, and it can crush you easily.

In December 2017, Bitcoin prices plummeted from nearly $20,000, which was a peak at the time, to below $3,500 by early 2019 before rebounding. Hence, it is possible for this to be one of down dips.

in September 2011, bitcoin's plunge of nearly 40%. This was in the middle of a three-month slide from August through October of that year where prices plummeted more than 35% each month.

Anyone who held through that heart-breaking period is having the last laugh though. Bitcoin prices hit a low of $2 in October 2011 and now trades for around $37,000. There is high possibility of the price action getting to $100,000 in the nearest future.
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