Utopia Weekly Industry Analysis Volume 2
Will Cryptocurrency Bounce Back? When cryptocurrency market and price of Bitcoin could recover? — 2022 plump explained
The majority of leading cryptocurrencies were still recovering from yesterday’s market crash on the morning of 24 January 2022.
Bitcoin Ethereum and other leading crypto currencies saw their values plummet in the latest market crash to hit traders and investors around the world.
It comes after many cryptocurrencies enjoyed record highs at moments throughout 2021, with one Bitcoin token reaching a price of £50,546.71 recently before significant dips.
A summer crash was sparked by Tesla’s decision to no longer accept Bitcoin as payment for its products — three months after the electric car company bought $1.5b (£1.06b) of the crypto.
Tesla CEO Elon Musk announced on Twitter the company was making a u-turn on its policy to accept the crypto over environmental concerns in relation to Bitcoin’s mining process.
Its impact was far reaching with other cryptocurrencies Ethereum, Binance Coin, Dogecoin, XRP and Litecoin among the worst affected.
Why did the crypto market crash?
Following Tesla’s decision, the market was already experiencing a turbulent time before China announced a clampdown on cryptocurrencies which saw prices plummet.
China banned all of its banks and financial institutions from offering clients any services involving cryptocurrencies, which included coin offerings and transactions.
The country’s financial industry bodies also warned against speculative trading.
The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China released a combined statement.
It read: “Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”
China has since ordered Bitcoin mining in its Sichuan province to shut down completely and told banks to stop supporting crypto transactions, in a latest wave of restrictions on cryptos which have seen prices tumble.
What price did Bitcoin drop to?
The crash saw the price of Bitcoin plummet to £21,719.56 at around 10.45am on 20 July — around half the value from its record high of £47,240.05 on 14 April 2021.
The drop in price was significant and was level with mid-January 2021 levels before the crypto enjoyed a fruitful three months which saw its value skyrocket.
Its valuation was boosted by the news that Tesla had bought $1.5b (£1.06b) of Bitcoin shares, which in turn sent the market price of both the crypto and Tesla soaring.
Yet Tesla’s decision to reverse its policy to accept Bitcoin as payment for its products sparked a downward spiral for the crypto — 21.43% down — and fellow digital currencies.
There have been fluctuations since, with a 7.66% market drop in the 24 hours prior to 12.45pm on Monday 24 January 2022.
Will the crypto market recover — and when?
It’s the question on everyone’s lips at the moment.
Will the crypto market recover, when and is now a good time to stick or twist?
There are differing opinions and a wide range of answers to those questions so be sure to do what’s best for you and your individual circumstances.
Over the course of the last year, Bitcoin has seen its value surge 255.65% — even when you take into account the crypto crashes of 19 May and 8 June — according to Coinbase (18 November).
Utopia is a metaverse project that transforms everything into blockchain. It is the first-ever project that utilizes stablecoins as its ecosystem token.
Enjoy GameFi, DEX, decentralized lending, NFT marketplace and more DeFi apps all in one in Utopia universe.
Stay tuned by visiting the following official channels.