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Three factors for the crypto meltdown that pushed Bitcoin below $50,000
What is causing the bitcoin market to crash?
It’s often difficult to pinpoint a specific reason, but in this situation, it appears that a variety of elements are at action.
To give you a flavor of the extent of the decline (albeit the price of bellwether Bitcoin (BTC-USD) had rebounded slightly by early Saturday afternoon to around $48,000, from a low of approximately $45,000), BTC was challenging $57,000 only Friday). The loss from that point to this afternoon’s prices is 14.2 percent.
Other digital currency, such as Ethereum (ETH-USD), have also plummeted in the last 24 hours. According to Republicworld, “the overall crypto market cap plummeted from $2.6 trillion on Friday to $2.07 trillion on Saturday.” For a brief moment last month, the overall market value exceeded $3 trillion.”
So, what’s going on here?
THE FED
The first dip in plain vanilla stocks, caused in part by Federal Reserve taper rhetoric, has investors concerned about speculative assets. Famous investor Louis Navellier has warned that “tapering by the US Federal Reserve might shatter the Bitcoin and crypto boom.”
According to Navellier, the Fed’s tapering “should cause a drop in risk assets, including…
