The battle of polarities is evident in the domain of crypto just like anywhere else. Yesterday we were pretty content with “the next all-time high” of around $60,000 per BTC, and no one really wondered,
‘Why is crypto up today?’.
We just enjoyed the moment, right? Perhaps, someone even bought a house or a Tesla.
Today, most people seem to be extremely concerned about the drop of the crypto market, not realizing that they, the majority, are themselves responsible for the current price fall. It is time to hastily educate oneself to figure out why crypto is down.
Why is crypto down? How long will it keep falling?
No one will be surprised if bitcoin loses 80% of its market cap and hits $10,000 per coin. Not the experienced traders who were in play since forever and survived 2018 anyway. It happened before, so it will happen again, right?
When bitcoin falls, every other coin follows with varying proportions. Only the most resilient and useful projects manage to retain value. Take a look at Crypto Bubbles: at the time of writing, Solana and Harmony look very confident. They withstood the defeatist moods and gained momentum.
Why is crypto down today: cycles of bitcoin
As we mentioned above, bitcoin holders witnessed massive losses before. And, wherever the price of bitcoin goes, altcoins follow. So, keeping an eye on the bitcoin price predictions and understanding how the dates of halvings influence it is a good idea.
Why is crypto down today: bad news
Some time ago we wrote an article on a similar topic, where the massive impact of celebrities was discussed. Back then, Tesla announced that it accepted bitcoins as payment for their cars. Guess what, Tesla made another announcement: the company will revert their policy and suspend the possibility of bitcoin payment. Why?Because bitcoin is not energy-efficient. The whole idea of Tesla and SolarCity projects is to make the creation of self-sustainable households possible. That includes renewable solar energy. It is perfectly in line with the general discourse of Tesla to blame bitcoin’s high energy consumption (more than Argentina).
Such news is not the only reason why crypto prices surged down, of course. They multiplied the cumulative effect of the general skepticism around bitcoin and coincided with the ongoing price correction.
Why is crypto down today: low economical literacy
The urge to sell all crypto in fear that the prices will surge down is a symptom of little patience and little economical literacy. As soon as a large red candle appears on a chart, herd psychology plays a nasty trick and more people start to sell.
In fact, it is often best to do the opposite. That’s correct, if the purchase decreases the average price of investment (per coin), the profit percentage would be higher when prices surge up again.
Don’t get it wrong, there are times when the bearish mood is perfectly justified. In case with crypto, historically, there are some good reasons to stay bullish long term. There is a good reason why Warren Buffet teaches to buy, hold, and buy more.
Why is the crypto market down today
Prices go down because people place a lot of “sell” offers with ever decreasing prices to make sure their deal closes off shortly. Of course, some people are glad to accept the offers because they are optimistic (and probably right in their optimism) that the prices will recover.
Instead of lamenting, ‘Why is the crypto market down today?’ study the market for a real marker of a crash: did a crypto in question experience the largest growth before the current fall? If it did, it might signify that its price will never recover beyond that previous all time high.
For example, the fluctuations of April-May 2021 market prices stand in line with price predictions. So keep your funds and just try to live through it. Even top traders report the total value of their portfolio dwindle, which is inevitable when Ethereum alone lost roughly 30%.
So why is crypto market down today? A quick recap:
- Elon Musk tweeted that Tesla stopped receiving BTC as payment because of high Bitcoin energy consumption, which resulted in high emissions.
- The interpretation of that news by the majority of market players is their responsibility alone, not Elon’s. People started to sell.
- Crypto skeptics keep the public in constant fear, and the public is even easier to manipulate as a result.
Even if the tweet never happened, the market correction could (and should) take place anyway. It could as well be connected to bitcoin price cycles and subtler reasons.
Why did crypto drop today: to finalize
We wish you that news about market price never caught you off guard, so Trustee wallet mobile app will notify you about crypto price swings. Twitter, Telegram, or Discord of reliable crypto traders will also provide a much appreciated warning when a new groundbreaking announcement by Elon Musk hits Twitter.
Hopefully, this article helped you figure out, ‘Why did crypto drop today’ and why events like this are happening on the market in general.