8% Drop in Bitcoin Price. Another Steep Correction Likely to Happen?

1:20 pm, Fri, 28 May 21

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After failing to retain its price in the $40,000 region, the flagship cryptocurrency has been reported to drop approximately 8% today. The price of Bitcoin now stands at $35,715 (at the time of writing), which has led some of the investors to worry about the future of the leading crypto asset.

The price of Bitcoin was seen to be at $40,000 yesterday after the U.S. President announced the allocation of $6 trillion in the next year to save the economy from being impacted by the COVID-19 pandemic. However, the surge in price was short-lived by BTC, which is a cause for concern for many crypto enthusiasts.

While Bitcoin is not the only digital asset to have seen a decline in the last 24 hours, many are wondering if the flagship cryptocurrency will ever climb back up the ladder.

Despite the drop in Bitcoin’s price that began last week, many BTC investors and Whales have been optimistic and accumulating the digital asset. This can be a positive indication for BTC investors and the growth of cryptocurrency.

Nevertheless, if you are also planning to start investing in Bitcoin then it is advisable that you use secure exchanges such as SwissBorg or Kraken.

How Has the Sudden Crash Affected the Crypto Market?

The top 100 digital assets (by market capitalization) have experienced a decline of about 10%. Some of the numbers are mentioned below:

  • The second-largest crypto asset, Ethereum, is currently at $2,488 (at the time of writing), which is approximately down 10.21% in 24 hours.
  • Binance Coin, the fourth-largest digital currency in the market is currently at $323 (at the time of writing), which is a drop of nearly 11% in a day.
  • Cardano, one of the most popular cryptocurrencies has declined around 11.36% since yesterday and is now at $1.48 (at the time of writing).
  • Taking the place of XRP, Dogecoin is now the sixth-largest cryptocurrency with a market capitalization of $41 billion.
  • The price of Ripple (XRP) has also dropped 12%, making it the seventh-largest crypto asset by market capitalization.

While the actual cause of the sudden crash in the crypto market is still unclear, one of the reasons speculated to impact the market is the criticism of the Japanese Central Bank Governor towards BTC.

Should Bitcoin Investors and Traders Be Concerned?

The reasons for the massive correction witnessed in the crypto market last week were somewhat obvious. Bitcoin being called damaging for the environment by Tesla and Elon Musk was one of the major reasons.

However, the reason for the sudden crash in the market witnessed today is less obvious, which is worrisome for crypto enthusiasts to some extent.

An important question on the mind of most Bitcoin investors and enthusiasts is whether this crash could signify another massive correction? While this cannot be said with certainty, no BTC holdings have reportedly been sold yet.

It can very likely be a temporary fluctuation as the crypto market can be unpredictable. Therefore, the enthusiasts and investors of Bitcoin and other cryptocurrencies should not be worried and hold on to the crypto they own.

On the other hand, people who are planning on investing in Bitcoin can do so by using reliable exchanges such as SwissBorg exchange or Kraken. Potential and new investors can also consider crypto trading eventually and use the ByBit exchange, which is one of the best Bitcoin trading platforms in the market.

Parties interested in crypto trading can also opt for copy-trading if they do not have the proper time or expertise to actively monitor the market trends and trade. The best platform they can use for copy-trading is PrimeXBT Covesting.