Bitcoin’s price plunged 50 percent from its all-time high in the first half of May, and most cryptocurrencies followed its lead. Last week, the stock market formally entered bear market territory, marking the first time since early 2020 that it has officially entered bear-market territory. Recently, the crypto market has closely tracked the stock markets, and it has been a victim of the broader selloff of risky assets.
After a month of slumping prices, Bitcoin is now back above $40,000. While that price represents a record low, it hasn’t meant that volatility is over. The crypto market continues to track the stock market and mainstream adoption. And, in the wake of the Chinese government’s intensified sanctions on cryptocurrency, some government officials are looking to regulate it further or even create a government-issued digital currency.
In May, the price of Ripple jumped from $0.13 to $0.39 in just 10 days. During the time when cryptocurrency valuations were rising, the price had mostly exhibited small increases. But the latest news has caused a similar spike in the price of Ripple. The digital asset will likely continue to increase in price over the coming months, and Ripple investors should remain vigilant to the trend.
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Litecoin is one of the biggest movers in crypto prices since its debut in 2015. Its price has dropped by over 50% since the start of the year. This sudden move has caused some investors to worry about the cryptocurrency’s future. After all, it is very similar to stocks. Because it doesn’t generate cash, it relies on fluctuations in sentiment to influence its price. A recent IPO of Coinbase has fueled a positive sentiment for the crypto industry. But in 2021, a cutback in monetary stimulus will lead to pessimism.
On May 27, cryptocurrency investors were watching a number of big moves on the market. TerraUSD, one of the largest stablecoins, fell by nearly 50% on a single day, following the IPO of Coinbase. While this news sparked optimism about the future of cryptocurrency, it also triggered pessimism among investors. That news spilled into other crypto markets.
Bitcoin, the world’s most valuable cryptocurrency, has dropped over 20 per cent in the past week. It is now trading at just under $31,000, down from its record high near $70,000 late last year. Bitcoin is at its lowest point since July 2021. Other popular cryptocurrencies have also taken a hit this week, with prices dropping by as much as 10 per cent. Ethereum is down nearly 15 per cent this week, while ethereum and cardano have slipped about 10%. Dogecoin, another popular crypto, has fallen almost 10 percent.