Crypto Markets Take A Dive

The cryptocurrency market lost about $30 billion this week, with the overall market cap for all cryptos dropping from roughly $210 billion down to around $180 billion. This sharp price drop is threatening the stable period that Bitcoin has been experiencing for around the last two months.

A $30 billion drop in one week is extremely significant, and many crypto investors will now be wondering whether or not a new bear market is starting.

What triggered the drop?

There has been a lot of drama surrounding the Bitcoin Cash hard fork which could have contributed to the sharp price decline. Bitcoin Cash recently hard forked to implement some new changes to the protocol. However, a faction led by billionaire Calvin Ayre has sprung up. This faction is pushing “Bitcoin SV” which is a different version of Bitcoin Cash.

There has been a lot of infighting between the different camps in the Bitcoin Cash camp, and this infighting could be contributing to the price drop that is currently ongoing in the crypto markets.

It is also possible that sentiment has just died down for crypto for the moment since there has not been a lot of upward momentum. Whatever the exact cause is, the crypto markets are struggling to move upwards right now.

What will happen next?

Now that the Bitcoin Cash hard fork has officially taken place, a lot of the drama might actually settle down. So, if this drama was contributing to the dive that the crypto market recently took, then the fact that this drama is settling down could stop the price drop.

The long-awaited SEC decisions regarding nine Bitcoin ETFs are also set to be made any time. So, it is extremely like that the crypto market will respond to this news when it breaks. If the Bitcoin ETFs are approved, then the crypto market will likely skyrocket and if they are rejected, then it will most likely drop again.

However, the crypto market did see a dramatic upswing around this time last year. So, if any of the factors that drove the price of Bitcoin up to $20,000 last year are cyclical, then this could potentially help to move Bitcoin and the crypto markets upwards. However, a lot of the hype that moved the market upward last year was surrounding the approval of Bitcoin futures. That news has already come and gone. But, more positive news could soon break regarding cryptos, which could push the price of the market upward.