#BuyTheDip Reappears On Twitter After Crypto Crash
Bitcoin and other cryptocurrencies fell sharply on Tuesday, with the price of bitcoin plunging below USD 60,000 after peaking at USD 69,000 last week.
According to CoinMarketCap, Ethereum (Ether), the second-largest cryptocurrency, fell by 4.8% in the last 24 hours to USD 4151.39 on Wednesday morning.
Nearly USD 200 billion have been wiped from the market, which is now worth USD 2.76 trillion, down 8.6% from Tuesday
As a result of the crash, prominent crypto influencers like Carl Runefelt started encouraging their followers to “buy the dip” – an industry slang that advises traders to take advantage of the low prices before they rise again.
The exact reasons for the crash are still unclear, but it may be due to renewed efforts by the Chinese government to crackdown on cryptocurrency mining activities. President Joe Biden’s new infrastructure bill might also have contributed to the crash as it includes provisions for the regulation and taxation of cryptocurrencies.
According to a report in the Wall Street Journal, the market correction might also be due to a stronger dollar.
Bread’s view? Price volatility is nothing new in the cryptocurrency market so #hodl and maybe #BuyTheDip too.
Image Credit: Guillermo Nolasco