Crypto Currency

Time to Know What Caused a Dip in Cryptocurrency Prices Last Week

It would have come as a huge shock for anyone observing the cryptocurrency for some time to see the overall crypto-market crash last week. It was quite shocking to see as the overall cryptocurrency market came crashing and no one knew exactly what had happened.

Whether there was bitcoin news or news about any other cryptocurrency, the situation was dire for the entire cryptocurrency. For the majority of the investors and crypto-market observers, it was something that was quite frustrating.

However, the crypto guide suggests that it was one of the most promising and beneficial opportunities for the cryptocurrency community to witness such a dip.

It was the perfect moment for the investors to buy the dip and benefit from it on a large scale. This is what the majority of the mainstream and experienced investors have done. Unfortunately, the majority of the inexperienced or amateur investors ended up panicking and selling off their cryptocurrencies to protect themselves from crypto-devaluation.

As for the experienced and veteran crypto-investors, they made huge investments in cryptocurrencies. The majority of veteran investors have spent millions in acquiring large quantities of cryptocurrencies.

It was on December 4, 2021, when the price of Bitcoin (BTC) went all the way down to $45,032.95, which was a really low price observed by Bitcoin. The next cryptocurrency is Ethereum (ETH) that experienced a dip on the same day as its price came all the way down to $3,632.56. Then it was Binance Coin (BNB) that also experienced a dip in its price worth $511.5 per BNB on the same day.

Surprisingly, it wasn’t the top cryptocurrencies that experienced such a dip but the entire cryptocurrency sector. However, the cryptocurrency industry has observed an increase from the lowest point from the beginning of 2021.

As the prices for cryptocurrencies dipped on Saturday, the entire cryptocurrency community was confused about what had led to that. In a matter of minutes, the entire internet was occupied with questions and concerns raised by the investors wanting to know what had happened.

This is when reports started coming in that it was due to the regulatory authorities from China that the overall cryptocurrency industry had plunged.

By now, the entire crypto-world is aware of what went down in the Month of May that resulted in dipping the overall crypto-market. It was in the month of May when the Chinese regulators launched their crackdown on cryptocurrency firms in the country.

That was the worst time for the entire cryptocurrency industry as the industry wasn’t able to make a comeback from it until August. Although it was thought that the Chinese regulatory authorities would no longer pursue the matter, but turns out, it was just getting started.

As of Saturday, December 4, 2021, the government and regulatory authorities from China have fully banned cryptocurrencies in the country. Right after the announcement, the mining firms and other cryptocurrency firms started dumping their equipment.

This caused a huge downfall for the entire cryptocurrency sector as investors started selling all kinds of cryptocurrencies out of fear.

No one wanted to suffer from the losses and they ended up dumping their cryptocurrencies for gains and saving their investments. Even prior to December 4, 2021, the situation wasn’t in favor of cryptocurrencies as they were facing somewhat of a downfall.

However, with the start of the new week, things have started working out in favor of cryptocurrencies. As the cryptocurrencies lost tremendously in value, the investors poured in huge stacks of money. They benefited from the dip and carried on investing more and more money to push the price of cryptocurrencies.

As a result, the prices of cryptocurrencies have picked up pace and they are now trading above their red zones. As of now, the price of BTC is over the $50,000 per BTC market, ETH is over $4,300 per ETH market, and BNB is over $570 per BNB mark.

Related Articles

Back to top button