9/1/2023 0 Comments Bitcoin crashes as freefall![]() They believe that amidst its day-to-day turbulence, Bitcoin will continue its zoomed-out growth pattern that it has displayed over the last decade. But after the price of Bitcoin dropped below $30,000, its price corrected when evangelists “bought the dip,” or entered the market at a discounted rate. Some believe that things will only get worse as more and more investors panic. Whether the crypto slide continues remains to be seen. Caleb Franzen, a senior market analyst at Cubic Analytics, explained in the same article that “historically negative performance” and “historically negative sentiment” can lead to “continued selloff,” which impacts prices negatively. ![]() Consumer prices are surging at the fastest annual pace in over four decades. “That add meaningful sell pressure on bitcoin and could drag down markets with it,” Corey Miller, growth lead at dYdX, told TechCrunch. Why are cryptos falling so sharply Because they are being hit by the same factors impacting stocks and other assets. In order to defend UST’s price, the Luna Foundation Guard, which safeguards the stablecoin, drained its $1.3 billion bitcoin reserve and bought $850 million more in Bitcoin. TerraUSD, also known as UST, is a token that is designed to always be worth $1, but sank below 70 cents on Monday as holders panicked and sold off their tokens en masse in a pseudo-bank-run. Some experts also believe that the recent struggles of UST, TerraUSD, one of the largest stablecoins, played a role in the most recent Bitcoin crash. “Right now, what we’re seeing is that the crypto market is in a wait-and-see mode.” “There’s a belief that mainstream adoption is taking a lot longer than people expected,” Moya said. The number of real-world use cases that would bring newcomers into the crypto space seems to be slowing this year, Edward Moya, senior market analyst at Oanda, told CBS News. These hacks have shaken consumer confidence in crypto and slowed growth from new potential buyers entering the field. Meanwhile, crypto has been shaken by a wave of hacks and security breaches, including a $600 million hack of the Ethereum sidechain Ronin. ![]() Many crypto investors have watched anxiously as governments of countries central to crypto trading or mining-including the U.S., China, India and Germany-have moved toward regulation. ![]() The total market capitalization of crypto similarly fell around that time when Elon Musk announced Tesla would no longer accept bitcoin for payments in May 2021, citing environmental reasons. China’s crackdown on bitcoin mining in mid-2021, for example, led to Bitcoin crashing from $65,000 in April to $35,000 in June. Given that crypto derives some of its value from people’s belief in it, markets can be rattled by surrounding skepticism or policy changes. Worries about regulation and security breaches ![]()
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