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Those familiar with the cryptocurrency may have noticed that it has recently taken a plunge.
However, if the past is anything to tell, it might not be the start of the “ crypto-crash ” everyone predicted, and things could bounce back to normal relatively soon.
However, this shouldn’t be of too much concern to those who are invested, as it is documented how volatile the crypto markets can be.
Plus, wherever Bitcoin goes – because it’s the biggest cryptocurrency – the rest tend to follow.
It is well known that cryptocurrency is subject to periods of extreme fluctuations – this is normal for the price. At the minute, experts claim the crisis is due to “FUD” better known as fear, uncertainty and doubt.
The reasons for this FUD encompass everything from China’s digital asset policy to Elon Musk’s tweets.
China is currently rumored to be cracking down on the use of digital assets such as cryptocurrency, and while this is nothing new to those who understand the crypto world, it still creates uncertainty and uncertainty. ‘hesitation.
As for Elon, he has recently been responsible for some of the biggest swings in the crypto universe, having created a massive buzz around Bitcoin and the Dogecoin meme just by using his social media profile.
However, it recently announced that its automaker Tesla will no longer accept payments for cars in Bitcoin until it becomes more environmentally friendly.
While this is of concern to those with skin in the game, it is not necessarily a reason to sell and release immediately.
According to Dow Jones Market Data, there have been 750 cases of price change of more than 5%, 230 cases of oscillation of more than 10% and nearly 50 changes of more than 20%.
Obviously, past results are not a true indicator of what will happen in the future, but there is a decent argument to be made that those who invest in cryptocurrency do not need to be too worried at the moment.
One of those not too bothered by the crisis is Paolo Ardoino of the Bitfinex cryptocurrency exchange.
He believes the market is a little more stable than before.
Ardoino told The Independent: “As a blockchain financial application, Bitcoin has become an enduring and battle-proven force.
“Those who take comfort from a sea of ​​red today should remember that they come from a very different generation than the one who will use this technology in a way that brings financial freedom to so many.
“Bitcoin’s steel has been sharpened under the most adversarial conditions of the open public Internet. Critics who celebrate what they perceive to be a crypto merger have the worst characteristics – associated with schadenfreude – towards elegant technology in its brilliance.
“Those who don’t and refuse to get it will be wrong.”
Vincent Chok, CEO of First Digital Trust, added: “I’m not really concerned about the long term effects of this. More and more financial institutions are getting involved in this space which has already legitimized this industry.
“Financial institutions, hedge funds, and high-wealth investors are looking at crypto beyond the benefits of investing … A lot of income is being made from crypto lending, asset lending, and it will only grow. , despite the declines in this situation. week. “
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