Nearly every cryptocurrency is down by 30% or more; Bitcoin bounced off from thirty thousand dollars and recovered back to forty thousand dollars. It went up by about ten thousand dollars within four hours. There is extreme volatility in the market.
During the market crash, nearly every crypto platform crashed at the same time. People could not log in and buy the dip; even websites that do not sell cryptocurrencies were offline. People that wanted to buy the dips were unable to log in and do so by the time everyone was able to log in; the price had already recovered to $35,000.
This is why most financial advisors recommend having multiple platforms because most times, when people want to sell at the top or buy at the bottom, the platforms crash due to massive user traffic. It is also advisable to use decentralized exchanges like PancakeSwap and UniSwap to avoid logging into a centralized account; you can go to a MetaMask wallet and make a transaction whenever you are ready.
Many new investors are not familiar with this level of volatility the market is currently experiencing; they entered the cryptocurrency business with a wrong mindset, assuming that it was a get-rich-quick scheme and an upwards rise where they would be making huge amounts of money. The majority of them do not understand how the cryptocurrency market works; they do not want to take the time to understand it, nor do they want to get educated. They want to jump in and see a 2x gain immediately; this is why it was very easy for the market crash to shake them out.
The dump yesterday was massive all at once; a massive amount of Bitcoin and altcoin had to be dumped to have such effect, which is why most people believed that market manipulation was involved. Despite the dip, Microstrategy still bought the dip, and they acquired about ten million dollars in Bitcoin. The CEO of Tron also bought over a hundred million worth of Bitcoin at the rate of $36,000; with all that is going on, there is still hope, and people believe that Bitcoin will be in recovery very soon.
It may not last long if Bitcoin dips back to the thirty to thirty-five thousand dollar level again. It may take a high level of manipulation and selling pressure to push back Bitcoin below thirty thousand dollars eventually.
Amid the market crash chaos that occurred yesterday, BlockFi mistakenly credited its users with excess Bitcoin during its promo payout. About a hundred BlockFi users reported that they were affected by the glitch; some allegedly received as much as seven hundred Bitcoin due to the promo offer.
Several factors boosted the drop: Elon Musk, Tether rumor, and China ban catalyzed the price dump.
The US regulations and the other catalysts encouraged the price dumped yesterday, and it was not surprising with the way people panic sold. On the bright side, it seems like we are on the road to recovery.
