The crypto market was rallying in green during the last week, giving investors hope to make good profits. However, the market has now started showing signs of slumping back as the market is trading in the red once again.
In the last 24 – 48 hours, the crypto market has experienced significant losses. The cryptocurrency leader, Bitcoin suffered a loss of 3.3% while Ethereum went down by a whopping 5.7%. The market dip is an indicator that cryptocurrency is yet again entering the bear market conditions.
Several factors contributed to bringing back the market slump. The top one was Tesla’s revelation of selling 75% of its Bitcoin holdings. As soon as the news of the sale surfaced on the internet, the price of Bitcoin surged for a while and then began going down. It spiraled down to $22,726 before then becoming stable again. As of July 22, Bitcoin is valued a little higher over $23,000. Since Bitcoin’s price trend usually affects the whole market, the prices of other coins followed suit.
Currently, except for Monero (XMR), almost the entire crypto market is trading in the red. While some investors are seeing this as an opportunity to buy the dip and invest in the market others are worrying about their almost “red” portfolio.
While some experts are seeing the current market slump as a short-term phenomenon, others believe that we are entering into a prolonged bear market condition as of now. The reality, however, is still unclear at the moment.