Understanding the May 2021 Bitcoin Market Crash!

Bitcoin is the very first cryptocurrency on the market and carries over the basic concept of Bitcoin; There was an enormous amount of altcoins in just a nominal amount of time. According to few reliable sources, there were more than 9000 cryptocurrencies in the market as of the end of March 2021 before the Bitcoin market crash.

The arrival of altcoins impacted Bitcoin’s market cap. However, the value of Bitcoin continued to rise. Several factors affect bitcoin, and this is one of the main reasons why bitcoin is extremely volatile.

The groundbreaking prognosis, which directly undermined the entire cryptocurrency industry, came true that Bitcoin and other cryptocurrencies would crash. Authentic sites like Crypto Crash Fortune can help you get more gigantic results in your bitcoin expedition.

The bitcoin market collapsed for a few explicit reasons. Still, most crypto investors blame a single factor for the cryptocurrency market crash, and no one is familiar with the actual factors that led to the cryptocurrency market crash on March 19th May.

Here’s everything you should know about why the cryptocurrency market recently collapsed; Let’s see.

Bitcoin and Musk Puzzles!

The bitcoin market crashed three times in total, and every look at the market crash shook the value of bitcoin in an exceedingly big way. The only good news is that Bitcoin has managed to escape every sticky situation. In March 2020, the Bitcoin market collapsed. However, the fall of a pandemic and global lockdown helped average and mid-market investors acknowledge the existence of Bitcoin. In a nominal time, Bitcoin attracted an enormous amount of attention from these ordinary investors.

In late 2020, Bitcoin caught the attention of Elon Musk. In a clubhouse room, Elon Musk even praised bitcoin, saying that bitcoin is in a bullish future. After a few incidents, Tesla Motors invested a significant amount in Bitcoin. Elon Musk’s announcement caused Bitcoin’s value to explode accordingly.

In March 2021, Tesla Motors announced that it would accept Bitcoin as a payment method. This tweet has also extremely increased the value and acceptance of Bitcoin as Elon Musk is the idol of many people. Few crypto watchers claim that Bitcoin reached its year-high price solely on the back of Elon Musk’s tweets. In short, Elon Musk has been accused of extremely pumping Bitcoin.

However, no one knew that Elon Musk’s reversal tweet is a stone’s throw away. In the second week of May 2021, Elon Musk tweeted that Tesla Motors will no longer accept Bitcoin as a payment method.

The tweet addressed the power consumption and fossil fuel emissions of bitcoin mining and its severe environmental impact. In short, Elon Musk voiced his concerns about the environment due to the impact of bitcoin mining. Elon Musk’s tweet had a negative impact on bitcoin’s value and bitcoin plummeted.

China Crypto Ordinance!

China has introduced hash crypto regulatory rules in the country on multiple occasions. Accordingly, recently the joint committee of China announced crypto regulation or, shall we say, crypto crackdown in the country. The fact may surprise you that the crypto crackdown did not ban investing and holding bitcoin as an asset. Still, there was excessive chaos in the cryptocurrency industry after China’s announcement.

The raid mainly targeted the ban on financial institutions from providing services related to altcoins and bitcoin to new users. The ban on accepting Bitcoin as a means of payment was all the more violent. In short, China’s announcement of the crackdown on cryptocurrencies correspondingly led to the collapse of the cryptocurrency market.

The crackdown has accordingly banned bitcoin mining, and China’s bitcoin mining ban has benefited tons of miners elsewhere as the centric dominance of China’s mining pools in the bitcoin mining industry is being moderated.

IRS and UK on Binance

This is one of the most underestimated reasons behind the Bitcoin crash, but it was found that the IRS investigation into Binance was responsible for the cryptocurrency crash or Bitcoin carnage accordingly. Binance is the largest cryptocurrency exchange launched in 2017; binance comes with its own cryptocurrency called Binance Coin.

The digitized coins are also used as tokens or transaction fees for conducting transactions using the Binance exchange. According to the robust sources, Binance has nothing suspicious about it. The fact may surprise you that UK financial watchdogs recently banned Binance Market Limited for not being registered with an explicit UK authority.

Is the Cryptocurrency Market Crash a Good Time to Invest?

According to knowledgeable analysts and researchers, Bitcoin has recovered phenomenally after each cryptocurrency market crash. After this cryptocurrency crash, Bitcoin was on the path to recovery in a nominal time. All the more, every major player in the marketplace is still with Bitcoin even after the crash; You must consider investing in Bitcoin, a robust source said.

Article on Bitcoin market crash and permission to publish here provided by Jean Nichols. Originally written for Supply Chain Game Changer and published on July 24th, 2021.

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