What’s Really Happening in the Crypto World?

Let’s start with the most up-to-date and significant catalyst for this downward trend. Recently, a statement was delivered in China that financial institutions and payment companies should not participate in cryptocurrency adoption. Virtual currencies can’t be used as a kind of payment because they aren’t original. The statement was upheld by the People’s Bank of China and the China Insurance and Banking Commission. So that was one of the biggest catalysts for the steep dip that we’ve seen from Bitcoin. But if we take a look at that price chart, you’ll notice that its price has been on a downward slope for the past week or so. China’s statements regarding crypto are definitely a big contributor, but they’re certainly not the only cause. Instead, what we’re seeing could be the aftermath of an insane crypto bubble. After all, the past few months have been the most pivotal months for the growth and success of cryptocurrencies.

Bitcoin surpassed $50,000 for the first time back in February of this year, only to shock the world once again by hitting $60,000 just a month after and then meanwhile, we can’t forget Dogecoin’s insane run from around $0.06 To $0.70 in one single month. The crypto market was making incredible strides during this ridiculous bull market, so it’s not hard to imagine that with cryptos like most other things, the higher they climb, the harder they fall, and nothing really goes up forever. So Bitcoin’s price has overall dropped by 40%, and if we look at the other cryptocurrencies and the market as a whole, we see a very, very similar trend.

So I have a coin market cap here, and we’ll take a look at sort of what’s happening in the market. Pretty much everything is down, as you guys can see. For example, in Bitcoin, we are at about $37,000 per coin right now. In the last 24 hours, that’s down 8.73%, and in the last seven days, it’s down 25.20%. So, as a result, the market cap is well under 1 trillion dollars, at about 690 billion dollars.

Let’s take a closer look at Bitcoin to see what is really happening. So you can see back here at the end of 2017 and the start of 2018, we saw Bitcoin jump all the way to about $20,000 per coin. Then we saw a really, really big decline to around a few thousand dollars per coin, and back in 2020, during the pandemic, we saw a big crash as well, and ever since then, the price has just gone up a lot.

So for anyone that has held Bitcoin for a long time, like you’re still making money, even if the price is around $37,000, it just means that you missed out on a bunch of potential gains if you had sold at the time. Really, that’s really impossible to predict, and I really don’t recommend trying to time the market. If we zoom into the last three months, we can see that Bitcoin was hovering between $50,000-$60,000 for the most part with this big, big dip at the end.

So if we zoom into the last seven days, yeah, we started the last seven days at about $55,000, and now we are just under $40,000. Same thing with Ethereum as well. Right now, it’s trading at about $2300 per coin, which is down almost 16% in the last 24 hours and in the last seven days, which means it’s down 41.63%. This brings the market cap to around 272 billion dollars, and let’s take a look at Ethereum because this is the second biggest coin in the world, very similar to Bitcoin, you guys. Similar increases in price and declines back in 2017, 2018, and starting at the end of 2020 and the beginning in 2021, that’s when we saw the price of Ethereum skyrocket.

In the last month, it was still increasing a lot. So just a few weeks ago, Ethereum was going up in price like crazy, hitting a high of over $4000, and if we zoom into the last seven days, we can see this pretty sharp decline in prices. We actually saw it jump down to about $2200-$2300 a coin in the last few hours. But it’s since recovered a little bit from that, which is good to see.

I’m not going to go into detail on any of these other coins, really, but if you scroll here, you can see the prices have just been getting hammered. All these red numbers right here show the decrease in price for the last 24 hours. In the second column, these are the decreases in prices for the last seven days.

Source: https://medium.datadriveninvestor.com/whats-really-happening-in-the-crypto-world-16237c375bdb?source=rss——-8—————–cryptocurrency