Crypto crash fears intensify as most major cryptocurrencies are in free fall and Bitcoin drops by US$9,000 in just one hour
Cryptocurrency enthusiasts happily celebrated the gigantic growth of the crypto market in 2021, but there have always been cautious voices that spoke of an overvaluation of the market, while some of them issued a stern warning that the chances for a crypto crash were higher than ever before. In an apparently belated reaction to the Fed's recent statements regarding the tapering of its monetary policies, most major cryptocurrencies in the past 24 hours have dropped significantly in price. This development further intensifies the fear of the aforementioned scenario of an upcoming crypto crash, even though the current drop can still be seen as a major correction.
Like many price trends on the crypto market, most major cryptocurrencies were more or less equally affected by this latest slump. Bitcoin (hardware wallet from US$59 on Amazon) for example already stumbled during a weak Friday session, which saw the most valuable cryptocurrency in the world drop to US$52,000 per token. This apparent crypto selloff suddenly intensified during the night from Friday to Saturday and caused Bitcoin to drop another 20% in value over the course of just one hour, bottoming out at approximately US$43,000 per coin.
Bitcoin has since recovered slightly and is currently priced at around US$48,000, which is still 30% below its record high of almost US$68,000 recorded on November 10. Crypto doubters like the well-known investor Louis Navellier anticipate that the crypto market could become even more volatile, and an 85% crash that sends Bitcoin below the US$10,000 mark is supposedly in the realm of possibilities. As always, such predictions and forecasts should be treated with caution.
This article is for informational purposes only and does not contain any kind of investment advice.