empty
 
 
20.05.2021 08:31 AM
Bitcoin loses 10% of its market value

Bitcoin collapsed again yesterday, reminding investors of the instability of the crypto market. It dipped by as much as 10%, giving it a market cap of $ 724,907,570,669.

So all in all, BTC has fallen by 29% from its highest value, and its market capitalization has decreased by $ 500 billion. And although there was an impressive rebound after, which made it possible to compensate for up to 15% of the loss, traders will most certainly not forget this tragic decline.

This image is no longer relevant

As for Ethereum, which is currently the second largest cryptocurrency, a massive drop of more than 40% was observed. Meanwhile, Musk's favorite token, Dogecoin, lost roughly 45%.

The sell-off came at a time when stocks and commodities were also under pressure, and when the Federal Reserve released the minutes of its most recent meeting. It disrupted the work of large crypto exchanges such as Coinbase Global and Binance.

But all of these started when Tesla CEO Elon Musk announced that his company will no longer accept bitcoins as payment.

Then on Tuesday, the People's Bank of China escalated the situation, when it said it does not recognize digital tokens as a form of payment. The central bank also imposed a number of restrictions on companies, forbidding them to engage in crypto transactions.

As a result, Bitcoin dropped to $ 29,700, which is very tragic since a month ago it was trading at $ 64,000. But for traders who have long been waiting for a correction, this decline is very good news.

In any case, there is nothing to worry about on the crypto market as long as Bitcoin remains above the 200 MA. Doing so will maintain the bullish trend. Accordingly, a drop below the level will immediately result in a sharp collapse, which is what happened with Bitcoin back in 2018. That time, BTC hit $ 20,000 and started a bear market. The downward movement lasted for two years.

This image is no longer relevant

Still, the medium-term forecast for Bitcoin is full of hope, as from the 200 MA, there is a chance of a quick recovery to $ 52,000, and then a sharp jump towards $ 64,000. But if Bitcoin drops below the 200 MA, its value will decline to $ 29,000, and then to $ 22,000.

Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO
  • Depósito al azar
    ¡Haga un depósito en su cuenta de $3,000 y obtenga $1000 más!
    ¡En Abril, sorteamos $1000 dentro de la campaña Depósito afortunado!
    Obtenga la oportunidad de ganar depositando $3,000 en una cuenta de operaciones. Tras haber cumplido esta condición, se convertirá en un participante de la campaña.
    UNIRSE AL CONCURSO
  • Opere de forma inteligente, gane un dispositivo
    Recargue su cuenta con al menos $500, regístrese en el concurso y tenga la oportunidad de ganar dispositivos móviles.
    UNIRSE AL CONCURSO
  • 100% de bonificación
    Su oportunidad única de obtener un bono del 100 % en su depósito
    OBTENER BONO
  • 55% de bonificación
    Solicite un bono del 55% en cada depósito
    OBTENER BONO
  • 30% de bonificación
    Reciba un bono del 30% cada vez que recargue su cuenta
    OBTENER BONO

Recommended Stories

¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback