Cryptocurrency
The Cryptocurrency Bubble Bursts! Digital Currencies Are Crashing Into Oblivion
Coinbase warns customers may lose ALL their money.
Ethereum, the world’s second-largest cryptocurrency, has joined the crash, plunging in value by 20% over the last 24 hours. Many investors had bought the digital currency during the COVID-pandemic and made money because values were generally rising in a so-called bear market.
But sadly, Ethereum has lost more than half of its value after Bitcoin shed a third of its value since January and Luna with 99% of its value wiped out in the last 48hours.
With the digital downturn hammering investors, it’s also alleged over $200billion has been wiped off the cryptocurrency market. Accordingly, investors in more traditional stocks are hurting, with US tech stocks also plunging in recent weeks, including Amazon, which fell 30% in a month.
Notably, Bitcoin had initially started in 2009 to bypass central banks, and an increasing number of offshoots currencies have since been founded, including digital art called non-fungible tokens.
All have unfortunately been decreasing in value over the past few years, including one currency that lost 98% of its value as fears for the global economy spread and investors started to sell risky assets. The FTSE 100 was recently down 2.5% after official figures showed the UK economy growing slower than expected in the 1st quarter and reversing in the final month.
Popular digital currency exchange Coinbase has warned its users could lose all of their money due to the crash.
Amid the pandemic, low-interest rates intending to boost economies led to investors purchasing assets like cryptocurrency with higher rates of return. As inflation leads to a rise in interest rates to safeguard savings, these assets were sold in favor of safer government bonds, providing better returns. Elon Musk’s Tesla fell 36% in the last month amid news of the CEO’s attempt to buy Twitter.
The electric car manufacturer is trading at $732, a dramatic drop from $1145 a month ago. Musk has heavily influenced the prices of Dogecoin and Bitcoin and had said the company would accept Bitcoin for purchasing its cars before axing plans.
The Tesla founder’s tweets on Dogecoin, including the one where he called it the ‘people crypto,’ have turned the once-obscure digital currency, which began as a social media joke, into a dream. However, the ongoing panic over crypto’s future has led to slower transactions on the cryptocurrency exchange Binance. Some users on social media accuse the company of a deliberate ploy to prevent them from trading their assets.
Here’s How The Internet Is Reacting To The Plunge:
