Bitcoin is the most popular and notorious cryptocoins, and it has had a good year. However, the virtual coin dropped below $60,000 just a few days after it had surged to its highest value of $69,000. The largest digital coin (BTC) dropped 8.2% in value, $58,661, while the second-largest token, Ethereum (ETH), dropped oven more than 10%, sources report. After the sudden crash, the two digital tokens bounced back, Bitcoin $60,952.39 and Ethereum at $4,336.08, according to Coindesk.
Several digital tokens dropped in value
Besides Ethereum and Bitcoin, other cryptocurrencies, such as Cardano (ADA), Ripple (XRP), Binance (BNB), Solana (SOL), and even meme coins (Dogecoin), dropped between 7 to 10 % in value. This crash on the crypto market caused losses of around $400 billion. This means that the market capitalization of digital tokens dipped to $2.66 trillion after a long time.
Why the sudden crash?
Although there is no simple answer as to why this crash happened, there are several theories. Some mention that one factor could be China’s crackdown on BTC mining. Another speculation is that the crash has been influenced by the U.S’s decision to reject the creation of a bitcoin exchange-traded fund.
Financial analysts have been warning for a long that about the cryptocurrency market and its volatility. Although Bitcoin and Ethereum are the two major digital tokens, and their values have not dropped to a concerning level, those who own cryptocurrency must follow this market.
Other analysists believe that it was less of a crash and more of a correction. Many investors have taken on social networking sites to comment on this sudden crash. Most tweets defend the coin, and several investors offer possible explanations and future predictions.
The current #crypto market correction is caused by excessive optimism. Every time the leveraged bulls get flushed out, they start buying futures on leverage again almost immediately.
Corrections last as long as it takes for most traders to start losing hope and stop buying dips.
— Glen Goodman (@glengoodman) November 16, 2021
Some crypto-enthusiasts believe it is the best time to buy digital tokens.
When you buy the dip and it dips further #buythedip pic.twitter.com/cODlcuw0FV
— noo (@alugalugg) November 16, 2021
Some experts believe that Bitcoin is even better than traditional gold. There are many digital coins and meme coins on the cryptocurrency market to choose from.
#Gold is jewelry marketed by sales professionals for a commission. Buy #Bitcoin.
— Michael Saylor⚡️ (@saylor) November 16, 2021