Crypto Suffers Another Huge Dip

For those invested in the various crypto options, there have been a lot of ups and downs throughout 2020 and 2021, and it seems the ride hasn’t come to an end just yet as last week saw another huge tumble for some of the biggest options with over $2.5 billion worth of value having disappeared. Whilst there has been a period of levelling off, there is no recovery just yet as the volatility that crypto has become known for remains – it has found some usage in online platforms particularly in online gaming as players can visit to find sites that accept crypto for example, but has been slower to find a more mainstream uptick outside of online platforms – but what has led to this huge dip after recovering to an all time high, and will the fall continue over the coming weeks too?


The crash came following discussions around policy, with some of the biggest players in major cryptocurrency firms appearing before the US House Financial Services Committee for a hearing on how to properly regulate the different coins – earlier in the year a similar drop had been seen following a proposal for regulation in the European Union to have more transparency put in place for the trading of coins – if regulation is the talk right now then traders can expect future adjustments too and inevitable more volatility as the market tries to figure out where it needs to be.

There has also been suggestions of some manipulation by crypto whales too – Justin d’Anethan, the head of exchange sales for a Hong Kong based exchange, had said “Whales in the crypto space seem to have  transferred coins to a trading venue, taken advantage of a bullish bias and leverage from retail traders, to then push prices down.” This isn’t entirely unexpected either, and not the first time this has been seen, and may be where the calls for more regulation and transparency are coming from as the fortunate few are holding the keys to a very lucrative trading option.

This does present opportunities, however, for some time many of the biggest coins have remained largely inaccessible to a wider market of traders with prices hitting extremely high levels when Bitcoin had surpassed $60,000 for example, this new low whilst not exactly cheap, does provide an opportunity for some traders to enter the market if they had felt like they missed the boat early on, and perhaps take advantage of the bounce back that is expected as the coins rise to previous highs seen throughout the year.

The big dip recently seen isn’t the first, and certainly won’t be the last as the crypto market continues to evolve, but if anything, the volatility does provide a level of excitement for some particularly looking to make some larger gains that may not be possible without this level of volatility.

the authorABHIYAN
Abhiyan Chhetri is a cybersecurity journalist with a passion for covering latest happenings in cyber security and tech world. In addition to being the founder of this website, Abhiyan is also into gaming, reading and investigative journalism.

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