The crypto markets are highly volatile in nature on Wednesday we witnessed a major fall in the prices of major cryptocurrencies like bitcoin, Ethereum, Dogecoin, Shiba Inu Ethereuin classic. the crash leads to a loss of $600 Billion to the market valuation of the currencies.
There are several events that took place in some couple of days that hurt the sentiments of the investors. the first event started when Elon musk CEO of tesla tweeted that tesla will not accept bitcoin payments, citing the environmental concerns of Bitcoin and in another tweet, he also called it a centralized currency as more than 40% of Bitcoins are held by a handful of investors, As the negative tweets from Elon continued, the Bitcoin kept crashing it causes panic amongst the investor and builds a selling pressure on other currency also.
In another event, Ethereum co-founder Vitalik Buterin burned 90 per cent of his Shiba Inu coin worth around $7 Billion and he also announced that he will donate the remaining 10% to charity. prices of Shiba Inu fall more than 30%.
Then on Tuesday the Chinese regulator (People’s Bank of China )banned financial institutions and payment companies from providing products and services related to cryptocurrency transactions, and also warned investors against speculative crypto trading. this announcement was the straw that broke the camel’s back.
Now the question arises Is this a good time to invest in Cryptocurrency?
The future of cryptocurrencies is unpredictable and markets are highly volatile. It is a very high-risk asset. Hence, we suggest to our readers that you should not risk important savings and emergency funds in cryptocurrencies.