Bitcoin prices remain volatile after falling from a high of $64,000 in April to $30,000 in May. The top cryptocurrency drops more than 50% from all-time highs.
Bitcoin, the best cryptocurrency to invest in, dropped 21% immediately during forex hours, on a tweet from Elon Musk in May.
The turbulence in prices keeps investors wary in the crypto fund space. Increasing pressure in the cryptocurrency market from the US regulators and countries like China and India are dragging the crypto prices lower. It keeps investors from investing in cryptocurrency.
Top Cryptocurrency Bitcoin Prices Slump
During forex market hours, bitcoin prices were at 39,150 on Thursday, June 03, 2021. Investors, who prefer to buy cryptocurrency like Bitcoin, were jolted by the large volatile swings in the crypto market.
Volatility in Cryptocurrencies
The crypto market is in the green today, with volatile movements in cryptocurrency prices. The current market cap of the global cryptocurrency market is at $1.68 trillion. It is a 4.30% increase from yesterday, according to crypto news. Institutional investors have avoided investing in the cryptocurrency dip that occurred recently, observes JPMorgan. Top cryptocurrency bitcoin prices may fall further, says JPMorgan’s Nikolaos Panigirtzoglou, in his research note.
Bitcoin has been one of the best cryptos to invest in, in the crypto sector. It hit a record high in mid-April at $64,700. But the top cryptocurrency slumped to a low of around $30,000 in Mid-May. The forex trading platforms are fuelled by a cascade of news and as cryptocurrencies move with high volatility. Investors, who buy cryptocurrency, should avoid trading during such high volatility in crypto prices.
Investors have been pouring money into major cryptocurrencies like bitcoin and ethereum in 2021. The sell-off in April and May erased hundreds of billions in market capitalization. In the recent crash, bitcoin investors were forced to sell their investments.
Bitcoin dropped from the life high at $64,700 on April 13 towards $31,200 on May 23, 2021. It fell from $60,000 to $36,000 after the tweet by Elon Musk. Though it recovered to $42,000, it slipped to almost $30,000 by the end of May. The last time that the digital currency went to $30,000 levels was in January 2021. Bitcoin plunged 30% after the tweet from Musk during forex hours. Almost $300 billion were wiped off the crypto market capital after the tweet.
Ethereum past surged $4,100, which was its life-high on May 11, but slipped to below $3,000 after the tweet from Musk.
Elon Musk Tweets on Sustainability Concerns
On May 12, Tesla CEO Musk had tweeted that Tesla would stop accepting bitcoin payments. Elon Musk rejected bitcoin payments for his company, stating that they were not environmentally friendly. Bitcoin dropped sharply more than 50% from the top formed on April 13, 2021.
Musk states that bitcoin uses fossil fuels for mining and transactions. The world’s largest cryptocurrency in market cap uses coal, which is the worst emitter of fuel. Bitcoin should seek other measures for mining as it is harmful to the environment, says Musk. His tweet about sustainability concerns brought a sharp drop in prices. Bitcoin crypto prices fell almost more than half their all-time high prices. In particular, investors show an interest to buy cryptocurrency whenever the crypto market prices move lower.
Musk’s company held almost $1.5 billion in Bitcoin. Tesla is the second-largest holder of Bitcoin in the world, after MicroStrategy. But the tweet by Elon Musk on the environmental impact brought a massive sell-off, dragging all cryptocurrency prices lower.
In 2021, bitcoin experienced many steep falls and is like to see more crashes in the future. It reflects the high volatility in the crypto sector. But crypto prices have bounced back from their slump on every occasion.
People’s Bank of China (PBOC) has been another reason for the fall in the crypto market capital in April. China banned financial institutions and payment companies against transactions in the crypto exchange. Investors had been warned against speculative trading. But many Chinese individuals hold cryptocurrencies, whenever crypto prices move lower.
In May, other major cryptocurrencies like Ethereum, Cardano, and dogecoin were moving with volatile swings, along with bitcoin, and were the best crypto to invest in.
Altcoins Recover as Demand Rises
Ethereum has more coins in circulation than bitcoin. It dominates the crypto market as the second-largest cryptocurrency. Investors’ interest in altcoin investment has started to pick up. Ethereum has reached its highest market share, say, analysts.
Cardano is one of the top-ranking cryptocurrencies and is considered a reliable altcoin. Dogecoin is considered a risky cryptocurrency that depends on Elon Musk’s tweet for its high volatility, as it fell almost 25% to 36 cents. After the sell-off in bitcoin, investors are showing interest in Cardano, XRP, and Polkadot, which are considered the best crypto to invest in.
Invest money into the crypto market only if you can afford to lose it. Bitcoin is up by more than 30% year to date. Investors involved in forex trading should use only spare currencies. Though profits are large, forex trading may also wipe away the invested amount.