China banned financial institutions from providing cryptocurrency services which caused a massive crypto market crash. Bitcoin stumbled down to 40,000 USD after starting the month of May at 60,000 USD. Other major cryptocurrencies including ethereum, BNB, and dogecoin also crashed, due to which entire crypto market lost at least 700 billion USD in the past week.
As the regulatory pressure and the concerns for environment grew intense, crypto feared about this happening. Then Elon Musk abruptly reversed his decision after exciting his followers about taking bitcoin as payment for Tesla cars. He followed up with a series of tweets and caused confusion among the community, who wondered why Musk was suddenly letting go of his crypto holdings.
Users have been freaking out on the development, so some of them tried to explain the situation is a language internet knows best; memes.
Crypto Market Crash and Elon Musk’s Tweets
Those who were of opinion that Elon Musk can easily manipulate crypto situation with his tweets, wondered if he would say something again to get the price back up. Given his endorsement of bitcoin took the currency to great heights and his tweets against bitcoin, resulted in a great drop. It is possible that a crypto positive tweet from Musk would again shoot up the market.
Bigger Loss for Common People
According to popular opinion, it does not matter to popular elite class if they invest money for long term and keep playing games to fluctuate the price. Here the common people appear to suffer the most because they might not invest for long term and like to trade often to increase their funds gradually on daily basis. Sadly, they won’t get much opportunity to do with the crypto market crash.
Buying the Dip
The crypto experts had a very different attitude towards the crypto market crash. The veteran traders are often unphased by the drips and surges. In fact, they buy more when the price is going low in hopes that it will get back up later. They do not mind investing more of their money even after crypto market crash because it is mostly temporary as the history suggests. Three years ago, Bitcoin dropped significantly to 4500 USD after reaching 20,000 USD, only to start rising up uncontrollably. This is why investors never shy away from investing in crypto especially when its dipping.
Keep HODLing On
Regarding Elon Musk’s tweets or China’s negative remarks about crypto, sometimes people forget to identify their true impact instead of their perceived impact. Realistically, Elon Musk has not made an erratic statement about crypto for the first time. Similarly, China has also changed its statements about cryptocurrencies many times in the past. Such news about crypto market crash can easily get a lot of traction, enough to stir market sentiments. However, they mean nothing in the long run. The crypto market can only flourish if it’s not driven by emotions where investors perceive certain events as negative and then over react. Experts suggest everybody to stay strong and HODL (Hold On for Dear Life) cryptocurrency.