The past week belonged to the legendary Bitcoin as well as to the entire crypto industry. Crypto boom or as some may call it “crypto rally” remained overpowered until it was conquered by the devil within i.e. crypto volatility.
The whole week since Monday, 12 April 2021 was going phenomenally, well for Bitcoin as it continued to gain more and more value. From US$ 58,000 range, Bitcoin went as high as US$ 64,800 plus but failed to cross US$ 65,000. Until the end of Friday, Bitcoin was surging until Saturday came and triggered the most notorious aspect of cryptocurrencies i.e. volatility.
Because of volatility taking place on April 17, 2021, Bitcoin’s rally, as well as its increased value, were dropped harshly. The dip was so severe that it decreased Bitcoin’s value from nearing 65,000 K to eventually US$ 51,000. This is the second time that the harshest nosedive has been taken by Bitcoin in 2021. However, luckily even with the major upset caused on Saturday, Bitcoin continued to climb towards the value prior to the dip. Its present market value for trading is around US$ 57,199 and there is a further increase in the value according to CoinDesk’s data.
The Saturday dip had in fact snatched 14% value of Bitcoin and resultantly the difference was apparent in the Bitcoin market capital. It was noted that because of the dip, Bitcoin has suffered a loss of US$ 400 Billion towards its market capital.
But Bitcoin was not alone to witness a dramatic decrease in its value. In fact, the famous meme coin is known as DOGE as well as the second-biggest cryptocurrency, Ethereum too got to see the fall. Both cryptocurrencies were otherwise surging but the volatility snatched their rally as well.
Therefore, what exactly were the reasons behind that a dramatic change inculcated drastically which jolted the entire crypto industry globally.
Crypto experts and analysts are of the view that the recent dip was orchestrated by Twitter. They noted that the incident took place because news, which was a “rumor”, was circulated and published by Twitter. This news item suggested that Biden has decided to initiate a large-scale crackdown operation against money laundering schemes promoted from crypto. However, there was nothing true about the news and it was only a rumor intentionally spread by someone.
However, the incident was a reminder for Bitcoiners as well as for those who are fond of the crypto industry and digital assets. Firstly, if impliedly, it is believed that the US might be taking action as suggested in the news; even then it does not rationalize the dip. Moreover, people are being reminded that the issue of volatility has not gone. In fact, it is there from day one so beware always.