The crypto market seems to have crashed, and as a result, all major cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, saw a drop in value. The meme-based cryptocurrency, Dogecoin, saw a 10% drop in a single day, leaving investors shocked.
Data from Coinbase showed that Bitcoin saw a 3% fall in value yesterday and was selling at $33,275. The crypto still hasn’t recovered from the decline and is selling at $32,927, as this is being reported. Alongside these major cryptocurrencies, several other crypto coins, including XRP, Cardano, and Litecoin, dropped more than 2% as well.
A report by Kraken depicts that this June has been the third most volatile one since Bitcoin was inaugurated roughly a decade ago. The report gives investors hope that the crypto market will likely recover, as it did back in 2019 and 2011.
As cryptocurrencies become more popular, it’s becoming harder for authorities to track and control the buying and selling of goods and services through digital coins. This, in return, has led to a rise in money laundering as law enforcement is unable to detect suspicious activities or obtain certain transaction records.
The EU documents on Wednesday made it evident that the EU will be proposing a new authority to uncover and avoid illegal transactions and money laundering in the region. Apart from that, the EU authorities will make it mandatory for crypto service providers to keep track of the buying and selling of crypto, making crypto transactions as transparent as possible.
Despite it being a rough few months for the majority of cryptocurrencies, analysts are still optimistic that Bitcoin and other major cryptos will shortly recover from the flash crash and get back on track. While this does make a lot of sense because this isn’t the first time Cryptos have crashed, only time will tell where the crypto market shall go from here.
The past few months weren’t too positive for cryptocurrencies as Musk decided to pause the acceptance of Bitcoin for Tesla, many environmentalists raised concerns regarding the environmental cost of crypto mining, China limited the use of cryptocurrencies by enforcing several laws, and UK’s financial regulator banned Binance.
Despite the crypto market crashing, experts and analysts suggest that Bitcoin will go up to $100,000 by the end of 2021 or during 2022. Some suggest that the fall in crypto values is a buy signal for investors as the crypto market is bound to recover from the ongoing crash. However, one simply cannot be sure of where the crypto market will head, so there still is a lot of confusion amongst investors across the globe, which is evident through social media trends.