The past few days have been very stressful for the crypto market. More simply, it was crypto chaos. From the unexpected bitcoin crash to Smart Ethereum Whale’s suspicious $41 million sale, these latest updates are starting a wave for all investors and crypto leaders to take the necessary step to elevate the crypto market as soon as possible. Otherwise, it’ll be too late. Besides this, Coin Informer is announcing a new series on mid-week latest crypto news that will discuss two of the market’s most significant breaking news-making waves. And this is the first news article of this series.
Without wasting time, let’s delve into the crypto world to know everything about Bitcoin’s unexpected freefall in the past few days.
Bitcoin’s Price Drops Over 18% in 10 Minutes – (August 18th, 2023)
Bitcoin is a digital asset that controls nearly 50% of the total cryptocurrency market. Ultimately, any crisis in it would undoubtedly impact the overall market. And the same thing happened on August 18th, 2023. Though chart indexes and crypto analysts predicted Bitcoin to witness a dip, no one was ready for this dip to make Bitcoin reach an all-time low. Around 9:34 on August 18th, Bitcoin’s price suddenly dropped over 18% in just 10 minutes. Yes, you heard it right, 10- MINUTES. The top cryptocurrency tumbled to as low as $25,970, resulting in investors scratching their heads, worrying about losing millions of dollars.
Fig. 1: Chart Indicating Bitcoin’s Freefall from August 16th to August 22nd
Reasons Behind the Bitcoin’s Price Dip (Crypto Chaos)?
A few hours after the bitcoin’s price fluctuated, netizens and crypto news tabloids started discussing the reasons behind the unexpected drop. Some also believe these reasons as a conspiracy theory, while others believe these theories as real reasons behind Bitcoin’s market loss.
Crypto Chaos: Elon Musk’s Massive Sell-Off of Over $300 Million Bitcoin – (An Opinion by Josh Gilbert)
According to a report by Josh Gilbert, one of the leading market analysts, Elon Musk’s Space X may have sell-off over $300 million in bitcoin holdings in fear of interest rates. On August 17th, when this news was published in ‘The Wall Street Journal,’ overall bitcoin price surged. It is evident that when a famous individual in the Crypto world sells their holdings, the prices come under pressure.
Crypto Chaos: Rise in the Government Bond Yields – (An Opinion by Tina Teng)
Another market analyst, Tina Teng, also proposed a potential reason behind Bitcoin’s recent wipeout. She exclaimed, over the past few months, the popularity of government bond yields is reaching new heights. In simple words, investors are more interested in safer government bond yields other than riskier digital assets like cryptocurrencies. Therefore, it can significantly cause the bitcoin’s prices to surge. Moreover, she believes the sudden financial collapse of Evergrande, a prominent Chinese company, might have impacted Bitcoin’s price. However, she later adds that Evergrande’s effects are only limited to the Chinese economy. Therefore, viewpoints are divided on this opinion.
Crypto Chaos: Chinese Yaun Becoming Less Valuable – (An Opinion by Markus Thielen)
Markus Thielen, head of research at Matrixport, shared a different theory on Bitcoin’s price crash. He believes Yaun, a Chinese currency becoming less valuable, might be the reason behind Bitcoin’s sudden drop. In defense of his statement, he put forward the 8-year hold event. In 2015, when Yaun was devalued, the bitcoin’s price also surged to 23%. However, bitcoin’s price eventually increased by 56% after a few days. That means the same thing is happening now. A few days before, the report went public, indicating the devaluation of Bitcoin. And like the 2015 situation, Bitcoin’s price went low. Markus’s theory will be 100% right if its price rises in a few days.
Crypto Chaos: Smart Ethereum Whale Selling $41 Million ETH – (Data Provided by Lookonchain)
Now, let’s look at the suspicious selling of $41 Million ETH by smart Ethereum Whale just a few days before the market crashed. Though this isn’t a reason, it raises various questions: how did Smart Ethereum Whale take so bold a step to sell $41 Million ETH, avoiding the market crash? Was Smart Ethereum Whale aware of Bitcoin’s price surging massive dip in the coming days? No one knows the answer to these questions; however, many believe there’s something suspicious about this activity. Since this is not the first-time Ethereum Whale has made headlines for the sudden selling of their holdings. It has happened numerous times, and they have successfully avoided many such incidents with minimum loss.
In conclusion, the recent turmoil in the cryptocurrency market, marked by Bitcoin’s dramatic drop and unusual events like the Smart Ethereum Whale’s sizable ETH sale, has raised concerns among investors and leaders. Various opinions on the reasons behind Bitcoin’s plunge include:
• Elon Musk’s sell-off.
• Rising government bond yields.
• The Evergrande crisis.
• The potential devaluation of the Chinese Yuan.
This mid-week series from Coin Informer aims to shed light on these significant developments shaping the crypto landscape. That’s IT for now; we will come up with another exciting crypto update next week.