The crypto market has always been in the news and under speculation for its highly volatile nature. Despite all the cynicism, the crypto industry has risen and spells profit for many of its investors. If manoeuvred wisely, the current downward trend of the crypto market can be used to the best of your advantage. It is, however, important to look at the history of crypto volatility and understand the origins and impacts of the big fluctuations to comprehend the crypto charts for the future.
Identifying these patterns might help you make wiser and more profitable decisions in the very opportune crypto market.
A History of Market Fluctuations
Many say that the volatility of crypto is its biggest charm which then creates a community of financial thrill-seekers.
Bitcoin’s first significant climb was from $974 to $20,000 in 2017, a 1,950 percent increase. This was the moment when the currency captivated the public’s imagination like never before and began its journey to widespread acceptance. As history goes, Bitcoin has evolved into the most sought-after cryptocurrency.
Till 2018, Ethereum (ETH) reflected a fluctuation in value which depended on Bitcoin’s hitherto performance. Recently in 2021, ETH broke that trend for itself. Even when BTC, which was leading the bull run, began to retreat from $50,000, ETH continued to touch and exceed the $4,000 threshold.
The romance between meme coins and Elon Musk reflects theatrically on the crypto charts. The value of DogeCoin, the world’s most expensive joke, increased by more than 20,000% in 2021, making it one of the most dramatic rises in cryptocurrency history. It’s no secret that Elon Musk, the CEO of Tesla, helped the currency rally. Prices soared up by 32% in just hours after Musk called himself the “Dogefather” back in April 2021.
Soon after this tweet, Elon Musk took to Twitter again and invalidated Bitcoin as a currency for Tesla purchases, citing the token’s environmentally unsustainable practices. This led to a sharp decline in Bitcoin’s value which shook the crypto enthusiasts to the core. These are the very few examples of the way big coins have shifted the tectonic plates of finance due to their volatility. It will be good to note how these fluctuations depend on investor sentiment, the word of influencers, global political climate, etc.
What Does the LUNA Crash Mean?
In recent news, the value of LUNA tokens of the Terra ecosystem crashed by 98% within 24 hours. LUNA is not technically a stablecoin but it is ‘pegged’ to one in UST. Because the value of UST is linked to the US dollar, its price – and thus that of Terra – was supposed to be far more stable.
However, UST differs from standard stablecoins in a few ways. It’s an algorithmic stablecoin, meaning it doesn’t have actual reserves and instead relies on a complex system of smart contracts to keep the value as close to $1 as possible. UST, on the other hand, dissociated from the dollar earlier this week, with its value plunging to as low as $0.29. This had an inadvertent impact on the value of LUNA. Investors rushed to liquidate their investments before matters got worse.
This is one of the most profound examples of how volatile the crypto industry can be. It sows the seed of scepticism but volatility is the other side of the crypto coin. The upside is the possibility of profits which is a hope that has successfully fuelled the crypto industry so far.
Check Out Quitriam Finance for Big Gains
Quitriam Finance (QTM) is a DAO token that has been making some positive news in the crypto industry. It functions on a distributed ledger system which creates a scope for transparency for the investors. The token has shown a hike in its value by nearly 90%since it launched. QTM is currently in its presale phase which means this could be the ideal time to diversify your portfolio with a fresh token at a discounted price.
Learn more about Quitriam Finance (QTM) here:
Always conduct proper research when dealing with pre-sales of currencies and tokens. The information above does not constitute investment advice by CryptoMode or its team, nor does it reflect the views of the website or its staff.
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