In the month of June, Bitcoin and the cryptocurrency market all took a trip to Rollercoasters. The price volatility of Bitcoin weighed on other altcoins as a result of its market dominance. The capitalization of the cryptocurrency market began in July, which on 22 June fell by around $1.6 trillion. On the other hand, the market ended the month with the approximately $1.4 trillion market capitalisation, a 12.5% decrease.
The fact that the Chinese government was enacting extremely stringent measures to prohibit cryptocurrency transactions and mining was a major contributor to the market’s decline. In their most recent effort, the Yaan miners, one of the largest crypto mining hubs in China’s Sichuan Province, received an inspection notice requiring the closure of all cryptocurrency-related transactions. As a result, the Bitcoin hashrate, which measures the integrity of the token’s blockchain network, has dropped to an average of 8 months.
The fear of the “Death Cross” is another reason for a fall in the month. A death cross occurs when the 50-day exponential moving average (EMA) falls below the 200-day EMA. As a result, investors panicked and sold. Bitcoin fell below $30,000 as a result of the death cross news. Not only that, but Bitcoin has had negative returns for the first time this year after trading as low as $28,800.
Bitcoin traded between $30,000 and $40,000 in June. The market, on the other hand, has decided which way to go. The token traded at a price of $28,800 near the end of the month, indicating a year-on-year decline. Because of its market dominance, Bitcoin determines the performance of all other altcoins, so investors must exercise caution. Bitcoin currently has a 45.4 percent market share, indicating that the entire market will follow whatever direction the token chooses.
Ethereum is the second largest blockchain network after Bitcoin. Ether, his original token, was also battered in June. It fell by 12.65%, with the market capitalisation nearly frozen. During the month, the token fell as low as $1,750, but quickly recovered.
The network will be upgraded in July to combat the high gas fee (transaction fee) that will hit the network if activity is high. While gas prices have dropped significantly in recent years, the network upgrade is critical because investors are looking to profit from Ether’s current price levels.
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