Bitcoin has crashed by more than 600 dollars per 1BTC. This is confirmed by Coinbase. To be more specific, the exchange rate dropped all the way down to 1961 dollars per 1BTC. Experts say that this is not the end, and the crypto currency may well continue getting cheaper in the near future.
According to the stats, over the period of May 25 through 27, Bitcoin’s capitalization dropped considerably as well. On May 25, they invested 45 billion dollars in Bitcoin while 2 days later it was only 31 billion dollars. Experts say that when a certain asset loses 14 billion dollars of investments in 2 days, and this is around 30% of the total market capitalization, there is no avoiding a market crash.
This means that the fate of Bitcoin depends mostly on the investor willing to invest money in the crypto currency. Mostly this is all about small-scale investors who once made the BTC exchange rate skyrocket to unbelievable heights. By the way, tis them who made the BTC exchange rate crash once they started reducing their exposure in panic, NordFX experts say.
However, some experts ask whether there was any reason to panic this time. The answer is NO. it’s just that the crypto currency ran out of the existing potential and the investors started taking profit and withdrawing their capital to trigger a downtrend.
We remind you that it all started on April 1, 2017, when Japan recognized it an official and legal means of payment. The news happened to be so good that Bitcoin found millions of investors in an instance. The trading volume started growing like never before. On May 5, they set a new record. The so-called Kraken exchange alone made BTC transactions to the amount of 187 million dollars. The geed news made the amount of BTC traders grow by 500%. The same holds true for the amount of BTC transactions. Eventually, this made BTC appreciate all the way up to 2799 dollars per 1BTC on May 25, 2017.
