Almost two months ago Bitcoin was sitting pretty at $64000 until things started to drop a few days later. It went as low as $40000 and after it went back and forth between $34000 and $40000 but when we thought we had seen it all it went as low as $28000 some days ago which caused so many people to panic and sell off their coins. Although Bitcoin has seen worse dips and grown exponentially past it most people are still in doubts and it's only a matter of time before things start to look green again. Ofcourse we know that where Bitcoin goes the rest of the cryptocurrencies follow and so the red carpet we notice when we open our trading apps and this is a very good time to buy although you have to be smart about it by watching and waiting until the price settles because the dip could go even deeper.
The dip we see today is as a result of accumulated factors which have together created a huge gap in cryptocurrency prices. First was Tesla which removed Bitcoin from it's payment options causing both Bitcoin, Ethereum and other cryptocurrency to drop very low. Bitcoin dropped as low as 17% while Ethereum which had recently gained some ground at they time dropped sharply. Elon Musk, Tesla's CEO came up with environmental arguments because he believed Bitcoin mining had an adverse effect on the environment by increasing the amount of carbon dioxide pumped into the air annually even though other cryptocurrencies also had similar adverse effects on the environment.
Next came China's clamp down on cryptocurrency by shutting down all services related to cryptocurrency and barring most financial institutions and payment companies from providing cryptocurrency transactions. Even though it had recently created its own digital currency "Yuan" and it's citizen are a huge percentage of cryptocurrency account holders worldwide China is adamant on stopping it's operations within the country. With the governments warning, most mining regions in the country has moved to shut down or shift base to a different country in compliance with the governments directive which have caused Bitcoin prices to plunge even further.
And then came fear, with miners shutting down operations many investors and traders moved to sell out due to fear of loosing everything they have. This caused the price to plummet even further and affecting the rest of the market. One thing we know about fear is it's ability to spread and cause even more havoc especially with newbies who have never experienced a dip this bad or think cryptocurrency is all about making profit. Even though most of the largest Bitcoin miners are shutting down operations, other countries like the U.S is looking to start its own mining operations soon.
The interesting fact about most of these factors is that they keep paving ways for cryptocurrency to grow and expand even more. For Bitcoin mining especially, with the crackdown on its mining in Beijing it's hashrate reduced to 116.2 million making Bitcoin mining much more lucrative than it was before and so it is only a matter of time before more countries and investors start taking advantage of this. The most important to thing to do right now is still to buy the dip because Bitcoin will definitely rise again.
