Why has the market cap of Bitcoin decreased by more than $12.5 billion in the last 48 hours? Bitcoin has been consistently falling for the last couple of weeks. Most of the people are actually clueless as to why it is falling. In the last 48 hours, the market cap of Bitcoins has decreased by at least $ 1.5 billion. Even though this kind of fall is not unheard of but the truth is that in the last 48 hours the pace has certainly exhilarated as well. That is why many of the investors are actually wondering why it is going down.
We would today share with you some of the reasons as to why Bitcoin, as well as some of the other cryptocurrencies, are consistently falling.
Tether is a cryptocurrency developed by founder of Bitfinex. It was supposed to be backed by US dollar. It fluctuates in the same way as US dollar fluctuates. However, now that the circulation of this cryptocurrency has increased significantly, it has come to the notice of most of the people that there is no way in which it would be backed by US dollar. If indeed, it is backed by US dollar, the company would have to store around $ 2.3 billion of US dollar. The problem is that there is no such a vast reserve for US dollars. This is one of the main reasons why investors think that it is actually a scam. Owing to this very reason, investors are figuring out that some of the other cryptocurrencies might be a scam as well. This is leading to the entire crash as well.
Moreover, any kind of fraud in the cryptocurrency space which is large enough can impact on the other cryptocurrencies as well. This is one of the main reasons why this cryptocurrency, as well as other cryptocurrencies, are falling as well. The recent cause of fall in the cryptocurrency space is owing to this very fear of the investors.
Fear in the cryptocurrency space
Whenever there is any kind of fear in the cryptocurrency space, can be sure that it would scare away a lot of investors as well. This is exactly what is happening with this particular cryptocurrency as well. Owing to this very reason, many people are actually staying away from the cryptocurrency space in the shorter term in order to wait out the correction as well as the other problems which are arising in the cryptocurrency space. It remains to be seen however when this bloodbath would finally end.