Since May 2021, Bitcoin and Ethereum have lost more than one trillion dollars market capitalization. Many investors are waiting for Bitcoin to crash below $30K price to start fresh buying.
Written by. Javed Mahmood
ISLAMABAD
Bitcoin, the leading cryptocurrency appears to be on the path towards hitting the ‘death cross’. The death cross is a financial term that is used to define the 50 days trading average below the 200 days moving average. According to Bitcoin analysts, the leading cryptocurrency can face this problem any time in the next few days. Some analysts have already issued Bitcoin crash alerts in the market.
Consequently, the value of Bitcoin has further dropped to $32,600 on June 22, 2021. Since May 2021, this leading cryptocurrency has lost its value by 50 percent and fallen from record high value of $63,000+ in May to $32,600 on June 22, 2021. Today the market capitalization of Bitcoin has dropped to $610 billion, from record high $1.1 trillion in May 2021.
Today, Ethereum too has breached the $2000 mark and fell to below $1,900 on June 22, 2021, amid selling pressure. In April/May this year, Ethereum set a new record by exceeding the $4,400 level for the first time. Nevertheless, like Bitcoin, Ethereum too continued to lose its worth day by day amid the US-driven crackdown against miners in China amid accusations of use of coal-based energy for Bitcoin’s mining. By June 22, 2021, Ethereum has lost more than 55 percent of its value in market.
Since May 2021, Bitcoin and Ethereum have lost more than one trillion dollars’ worth market capitalization. The way China has launched an extensive crackdown nationwide against Bitcoin miners, it appears true that Chinese are using cheap but most damaging energy for the environment. About 80 percent of the mining of the leading cryptocurrency was carried out in China before the launching of crackdown against miners in May 2021.
Details gathered by The Truth International revealed that Bitcoin’s mining has suffered a serious blow in recent weeks and now Chinese and other international companies are shifting their mining machinery to other countries, including the United States. Most of the miners are heading towards Maryland State in America which laws protect mining and trading of the cryptocurrencies.
Experts believe that Bitcoin will see fresh buying when it hits the $30k level. They opine that Bitcoin appears to be attractive for buying at this price. Except China, many positive developments are taking places regarding mining, investment and trading in Bitcoin and other currencies. Cryptocurrencies will settle down once crackdown in China completes. Worth to note is that mining and trading of Bitcoin was going on for years in China despite a government ban. However, the US pressure on China to discourage coal-based energy use for Bitcoin mining worked well and it has left China with no other choice but take action against miners.
Experts also believe that once crackdown in China completes, there will be no further excuse for anyone to damage Bitcoin and other cryptocurrencies in the name of environmental threat. Notably, more than 100 million people were involved in mining and trading of cryptocurrencies. The number of crypto-fans was growing rapidly globally when Bitcoin and Ethereum were setting new records of increase in their value and demand.
This craze, however, has subsided since May 2021 when the US government and China discouraged mining of the culture of cryptocurrencies. Thus, millions of miners and investors associated with Bitcoin and other currencies have suffered a lot because of an unprecedented decline in value of these currencies. Experts who were predicting increase in Bitcoin value to $100,000 by December 2021 have disappeared from the market and alerts were being seen on social media about impending crash of Bitcoin.