The cryptocurrency market has seen a huge decline recently. Bitcoin, the most widely traded cryptocurrency, jumped to $31,000, less than half of its all-time high of $64,800. The negative performance of the market indicates the negative sentiments of investors. Investors are in panic after the drop of bitcoin.
The sufferers of the cryptocurrency collapse were not just clients and investors. But some of the largest crypto exchanges also experienced a collapse due to the increase in traffic. The list includes big names like Binance, Coinbase, and India’s WazirX, which suffered outages. The outage is due to a sudden increase in traffic.
Furthermore, Bitcoin nearly slashed from its height and reach $31,000. On the other hand, Dogecoin and Ethereum also recorded more than a 25% drop. WazirX which is the largest cryptocurrency exchange in India has also experienced an outage that caused a huge loss of people. The firm disclosed that it was not the sell-off that took WazirX down but instead, the increase was because of the users trying to ‘acquire the dip’.
‘Buy the dip’ is a notion in which traders and investors acquire an asset after a cut in its prices, because in their point of view this as a beneficial time to either get in or add to their existing assets. WazirX disclosed that it has experienced the 400% more traffic than normal days which led to the massive crash.
Binance which is the largest cryptocurrency exchange has also faced a massive crash. The huge crash came after China prohibited financial institutions and payment firms from allowing or offering any services related to cryptocurrency transactions. Another reason which caused the massive clash is that Tesla disclosed that it is no longer accepts bitcoin as payment.