This may be yet another proof of the unpredictability of cryptocurrency.
Bitcoin values have again crashed after seeing a steep rise once again reaffirming its reputation as a token with very high volatility. Crypto Tokens are indicted for their unpredictability and this was confirmed by the recent crash in Cryptocurrency which included the top two tokens-Bitcoin(BTC) and Ether(ETH).
Bitcoin had reached an all-time high after its debut as the first US Bitcoin futures exchange-traded fund. BTC which is the world’s largest and the first cryptocurrency saw an erosion of 4% values and when last news came stood at $62,740.
The world’s second-ranked crypto coin which is linked to the ethereum blockchain, tanked to around $4,112 representing a 2% drop as per reports from Coin Desk. Other crypto coins also faced the same sentiments. Cardano values tanked by 3% and stood at $2.16. Meme based crypto-token, Dogecoin also fell by 3% and its values stood at $0.24. The only exception was Solana whose values surged by 10%. Most of the prominent crypto assets including Shiba Inu, Binance Coin, Litecoin, Uniswap, XRP were all trading in the red.
Bitcoin (BTC) had reached dizzying heights on Wednesday and touched $66,974 to reach an all-time high. The surge was caused by the unveiling of ProShares Bitcoin Strategy ETF. Investors have been waiting expectantly for a long time for the debut of the ETF. The unveiling of the ETF will provoke greater investment from both retain and institutional finance players.
However, most experts were not impressed and warned that a fall in the near future is likely. Analysts like J.P. Morgan doubted for how long this surge will continue. It added that already BTC owners have a multitude of choices and the launch of the ETF will not have much impact on the investor sentiments. It must be noted that ETF does not invest in BTC but in instruments in the future markets which are tied to Bitcoin.
Having said that there are no dearths of critics who regard Cryptocurrency as a bubble that is inflated on happenings and not upon hard economic wisdom. An example of this is Dogecoin which is a meme based Crypto asset and is a hot favourite of Billionaire Elon Musk. Musk’s tweets helped its values surge unbelievably before the great crash happened. A combination of factors led to the Crypto mayhem of May 2021 in which most crypto assets lost almost 50% of their values. However, there are many who regard the technology on which Crypto assets are based, the Blockchain technology as more important and the technology of the future.