It’s been a tough month for cryptocurrency. But, we were expecting it!
Let's take a look into how the cryptocurrency market has been over the past few weeks.
What’s been influencing it, what has been winning, what has been losing, what’s new?
Whilst the overall picture may not be looking too bright right now there are still positive moments for the crypto market.
Let’s get the bad over with first.
Russia
Firstly, the Russian Central Bank has proposed a potential ban on cryptocurrency. The bank sees crypto as a threat to financial and economic stability for the country. The source and background of cryptocurrency to them is dangerous and something they do not wish to be associated with.
But, nothing has been set in stone yet, there are many across the Russian government who disagree with this and believe any move against crypto would be damaging.
One Russian politician said that it could be particularly damaging for the IT sector given that Russia is the 10th largest country for Bitcoin mining. Not only that but it could cause a migration of those with large wealth in crypto to a country that is accepting of it.
Stock Market
Secondly, the stock market has been going through a correction with some downward trends across the board. From Amazon to Netflix, many US stock exchanges have seen a dip over the past few days.
One of the companies that notably took a hit is Coinbase. Coinbase is one of the worlds largest cryptocurrency exchanges, with over 73 million users and over $327billion traded every quarter, it has a weighty influence on the cryptocurrency market.
However, as with cryptocurrency, the stock market has to have periods of correction as it simply cannot sustain a constant trend of growth. There have to be two sides to every coin, with ups come downs.
Market Correction
This brings us to our third point which is cryptocurrency correction. Bitcoin, in particular, has seen substantial growth over the past year, with awareness and adoption flooding the world this coin reached an all-time high.
With an all-time high there has to then follow correction, cryptocurrency cannot simply continue to grow in value. There are many things that influence the value, from politics to celebrities to technology and more. In this case, it is simply a market correction.
If we look at the trends of Bitcoin you can see it was at a similar stage to where we are currently a year ago. If we then look at what follows there were peaks and troughs, but overall the value rose.
So perhaps we are hitting this plateau of $32,000 in order to begin adjusting and rising at a more manageable rate.
Time for the positive influences we have seen!
Elon Musk, Tesla, and Dogecoin
Firstly, Elon Musk continues to back cryptocurrency, in particular his beloved Dogecoin. Tesla made an announcement that they are now officially accepting DOGE for their merchandise! Whilst this may not be as good as being able to buy a Tesla with DOGE from us at AutoCoinCars, it is definitely a step in the right direction for Elon and Tesla.
Interestingly when they made this announcement Dogecoin saw a nice rise in its value. Although this was a temporary rise due to the overall market crash recently, it is still positive news for supporters of cryptocurrency and dogecoin that this kind of influence can still positively affect crypto.
Market Correction Again!
Another positive point to make for the crypto market is that we have seen this kind of dip before in the crypto charts and if history repeats itself then we should be in for a comeback across the board.
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