Crypto market crash confused people, as an investor panic selling their funds and cashing out their investments. Google searches shown a spike for when will crypto market go up or recover following May 2021 dip. This crash started, when Elon Musk said Tesla no more accepting Bitcoin as payment for buying cars. Then series of fud news that include China banning trading, mining with warning to institutional investor and banks in China. As, US tax model and Europe warns merchant or payment system to consider crypto as asset only and stop using crypto as payment.
I would say this is healthy crash, as crypto market bull run was expected end bit early i.e., before May 2021. But market will bounce back most probably in September 2021 and Bitcoin with other alts will be heading to hit new all-time high. If market fails to recover in the time of June to September, then following previous year pattern we could expect recovery in end of December 2021 or January 2022.
The blame game continues as Elon musk heavily trolled for crashing market, but he is the one behind dogecoin pump. In 2021, Dogecoin pumped by over 15.5x and Bitcoin breaks the resistance of 35k to $40k. Elon musk later clarified that he just hates fossil fuel-based bitcoin mining, as it is controlled by whale miners. Later, some shocking news coming out, as this was planned market dump by whales. Whales referred to investor who holding maximum supply of any crypto, as they sold their BTC and alts at peak price. Ethereum founder also transfer his Ethereum to Coinbase Exchange exactly 2 days before crash.
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We know Bitcoin has big influence on market, where if Bitcoin stared collapsing, other altcoins also follow similar pattern. In just 3 days crypto market losses over $500 billion dollar in market cap, as Bitcoin dominance slipped below 40%. As of writing, market rebound with bagging $300 million and now Bitcoin hits above $35k and Ethereum crosses $2000 USD.
Crypto Gain from 1st January 2020 to 24th May 2021
Many of newbies comparing this crash with 2018’s crash with no doubt they should get enough knowledge about blockchain and crypto industry. Things are changed now, china in 2017 Banned Bitcoin and crypto trading and now for 100th time again banned trading and mining. Whenever market seen in red graph, news and fud news starts their game to create more panic situation or market dump.
We know if market keeps going up then everyone will take out profit, as it has simple logic because if one is taking profit and at other someone has to lose funds in value. Elon musk was the one who brings a greater number of investors in last few months. in recent tweet Elon was working with developer of dogecoin to solve scalability issue and innovation payment system. as we could expect that he seeing Dogecoin as replacement of Bitcoin. once he makes official announcement that will create positive wave in market and correction will starts after that.
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Whales(Huge BTC/ETH hodlers) and Big investors like Michael Saylor(Founder of MicroStrategy) and Justin Sun(Founder of Tron network) have recently acquired more BTC to their portfolio. This big investors are always look for an opportunity like this crash or dip in crypto market. Justin bought around 4145 BTC at $152 Million USD on 19th May 2021. On the same day, Michael achieve milestone of total 111,000 BTC on his portfolio. We can not call these news positive/negative, as it has both impacts. Good impact is because of this purchases, we are not seeing a deeper dip. If we look at other side, this whales/ big investors are accumulating more and more BTC. As they can dump their BTC holdings anytime and crash the market in no time.
HODL is key in crypto investing, as per the survey only 1% of world population, as more investor expected in next 2 to 3 years. Around the world acceptance of crypto still having mix reaction, as in some countries already regulated it and some countries about to make decision very soon. Most of countries banning crypto as payment because people avoided tax using crypto as payment. Crypto in most of region consider as digital asset and that could be possible move ahead from India or counties who haven’t made decision yet. Buy The Dip and HODL will be the great strategy considering current situation of market.