The entire world was taken by surprise when the crypto markets crashed on 19th May 2021. ETH made a low of $1800 while BTC dipped to $29k before recovering again. And now it seems that there are in a much better position. But you all must be wondering what went wrong and why there was such a huge sell-off. Those who HODLED on to their coins, congrats! You are now an elite member of the HODL community. And tho who sold, it’s okay, you will have future opportunities.
Here’s what happened!
To make this very simple, I will go forward with the series of events chronologically. The markets were performing quite well when Elon announced that tesla would stop accepting Bitcoin as a payment method. After this, the price of Bitcoin and other currencies took a hit due to the oversensitive investors in the sector. And then, as the markets started to recover, he shared another tweet with stats that proved his point regarding energy consumption. And this pushed the prices lower.
Then the market took a few hours to recover again, and as that started to happen, news came that Binance will be inspected for legal reasons. Even though the title of the news was misleading and the thing was completely different, people started to panic sell again. So, yes, that was the first part of the story.
The markets became so weak that Bitcoin wasn’t able to sustain over $46k, which was a huge problem. And then, the reports came that China has banned financial institutions from participating in crypto exchanges and any similar operations. This created even more panic, and the bears overwhelmed the bulls, and the markets crashed in panic, and havoc was wrecked upon investors. I know these are some heavy words, but the sentiment was similar yesterday. And the US tax dates are also here, and Bitcoin has a history of falling around this time. So, yeah, this is why the entire market crashed. There might be more minute details to this, but this is the bigger picture.
Some good news!
The markets have already started to recover, and BTC is almost at $40k and ETH at $2.6k. In India, the government has announced that they are planning to have a panel to discuss proper regulations for cryptocurrency. This means that the banks will have to work properly with exchanges if the government says so. It also means that Bitcoin and other currencies will go mainstream, and more investors will dive into the sector. This next few days are going to be important; with some positive news, the market sentiment can again be put in the right direction.
What are your thoughts on the huge crypto markets crash? And do you think that this will be the beginning of the bull market again? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: Bitcoin dumps to $29k as markets collapse under critical news
