Washington, D.C. — It has been a rough week for cryptocurrency traders as nearly every major cryptocurrency took a dive, especially in the last 24 hours.
The price of Bitcoin has dropped almost 50% from its peak of $65,000 in March. At one point this morning, the price was as low as $30,000. At the time of writing, $BTC is sitting at $38,000. Similar dives can be seen in Ethereum (down 32% from last week) and, yes, even Dogecoin (down 15% in the last 24 hours).
The sudden dips come after Telsa CEO Elon Musk announced the company would no longer accept $BTC as payment for their vehicles, but he did mention that the company would accept Dogecoin.
Musk has become a mascot of sorts for Dogecoin, which is sort of a joke in the cryptocurrency community as it is based on an old internet meme. Oddly though, even with Musk’s announcement, Dogecoin is also falling.
China recently reinstated its ban on all forms of cryptocurrency in their country, even though that in itself is not news that could be part of the explanation for the sudden drops.
Another answer is that Bitcoin may have just flown too high to the sun for the time being. Cryptocurrencies were gaining steam this year for a multitude of reasons, including the inflation of the U.S. Dollar leading people to look for alternate currencies.
Dedicated Bitcoin and crypto traders are continuing to flood social media with #HODL (meaning hold, don’t sell) and #buythedip. This is not the first time Bitcoin has seen a significant drop. After all, Crypto skeptics were quick to jump on BTC’s volatility when the price suddenly dropped from $20,000 to $8000 last year. A dip that was later followed by a quick climb up to $65.000.
It is nearly impossible to predict the highs and lows of cryptocurrencies. Whether the recent drops are temporary or a sign of a larger market correction remains to be seen. But as cryptocurrencies are becoming more prevalent, culturally and financially, it’d be hard to believe that this is the end of decentralized currencies.
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