The past few weeks have seen the cryptocurrency market showing several different fluctuations. With crashes, recovery and crashes again, the turmoil seems neverending.
Bitcoin has been the spearhead for the crypto market like it always has been, but in recent weeks this isn’t something to write home about. The leading cryptocurrency is down under the $5,000 key resistance level for the first time since October last year. Ripple and Ethereum and swapped places and are also seeing heavy losses but XRP seems to be doing better than the rest leading some analysts to believe that XRP could overtake Bitcoin for the number one spot by the end of this week!
All of this and more leads to one question, which still doesn’t have a definitive answer:
What is going on?
There are several experts who have been spitting out theories and many of them seem to be sourced at the Bitcoin Cash hard fork but others are aimed more at new from semiconductor manufacturers that send orders for crypto mining computer equipment declining.
All of this could be potentially impacting the crypto markets but there is no way to know for sure as of yet.
That being said the hard fork of Bitcoin Cash can be wiped off the table. The 10 percent drop for Bitcoin last week did overlap with the hard fork, yes, but there is no actual reason for the two to be connected. The actual fork was based on technical disagreements amongst the coin miners and code writers. No other cryptocurrency had any link to the two.
Next are reports from Nvidia and Advanced Micro Devices is the light that they are both seeing drops in their crypto segment sales. Digital currencies depend on blockchain miners to expand supply up to the predetermined limits. As reported by Nasdaq, “the miners use sophisticated computer servers to calculate complex equations that define the links in the blockchain. It’s not likely that a slowdown in crypto mining would affect prices to the drastic extent we have seen recently; all it would do is slow down the rate at which new crypto coins enter existence, in a system which the users already know is inherently limited.”
The bear market has been going on for a while now but there is no way of knowing how long it will last. Hopefully we will see a repeat of what happened last year when Bitcoin was touching 20k.
What are your thoughts? Let us know what you think down below in the comments!