Crypto is very volatile market we all know that from start and many major things has happened in the last few months. Last year Bitcoin price was trading at the price of $50,000-$60,000 and highest touching point was $69,000 and from that point market is bouncing back and price is doing done drastically mand there are few major coins which controls the market if you have been watching market carefully then you know that when Bitcoin and Ethereum prices are going down other crypto which are based on the same blockchain are also affected.
There are many causes that led Bitcoin prices go violently one of the prime example is Elon Musk, you can’t ignore this person many coins have gone crazy because of his tweets like he did with Dogecoin. He made his price to go around 100x within span of few months. you can see his tweets here.
You can clearly see that he was supporting Dogecoin, and in the explanation he said he wanted to prove that the persons wrong who were making fun of crypto, his original goal was to take Dogecoin to $1 so he could show people that cash is trash and you can use crypto to pay your bills. Ofcourse it was a big mistake you can’t take a memecoin to the moon. Hw also said he will keep supporting Dogecoin.
After few months, He announced that his automobile company Tesla is accepting payment in Bitcoin and also holding Bitcoins worth $1.5 Billion at the price of $43,000. which pushed the Bitcoin price above $50,000. And soon after that they announced that they are dumping Bitcoin because it causes more energy usage and not good for environment. at that time bitcoin price was touching $60,000 means they made more profit then selling cars in that year with Bitcoin. You can see his explanation in tweets.
Here he was explaining that Bitcoin is using more energy that’s why they stopped accepting it. But think about that he is a genius and thousands of smart people are working with him 24/7 why didn’t they think about it before making big decisions like buying $1.5Billion of Bitcoin and holding it accepting payments and pushing it’s price higher and higher. Anyone can clearly see this was a pump and dump scheme and probably they made profits in Billions and got away clearly.
Who suffered the loss then?
You can read more about his foxy decisions here
After they announced that they stopped accepting Bitcoins, It’s price start going down because, it’s price was growing exponentially growing day by day and became a overvalued asset. As soon as investors who were running in profit realised that they sold their holdings in fear and heavy selling causes market to crash. and many laws and regulations were also made to govern crypto market. Crypto scams are also one of the major causes of going crypto market down like Luna has recently causes a disaster of $45 Billions.
Anonymus group of hackers, when they realised that Elon has made a disaster they releases a video, saying that he is making people life worse he thinks he is the smartest person in the room until he meets someone like him.
Now lets talk about the present, after the dump prices are now going naturally at their places Ethereum has raised itself from $800 to $1900 at present and is quite stable. Highest price of Ethereum was about $4500 and now everything is normal and crypto space is growing at its own pace.
Bitcoin prices has gone drastically down and now both are trading at large difference now people are thinking it Ethereum will cross Bitcoin or Bitcoin will go up, clearly we can’t say anything at this point making no assumptions are better then making false assumptions. Only point is that Bitcoin is going down and Etherium is going up.
Ethereum ecosystem has grown more then Bitcoin so it won’t surprise me watching that Ethereum surpassing Bitcoin. Most of the DeFi apps are based on Ethereum blockchain. and also we can see significant growth in NFT marketplaces and gaming spaces.