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Crypto Market Cap Plunges as Bitcoin (BTC) Price Dips Steeply

The volatility associated with bitcoin (BTC) is unknown to nobody. Bitcoin’s price is often seen shooting up and dropping down significantly in a matter of minutes. After gaining a bit momentum in the first week of January as bitcoin crossed the $4,000 mark showing slight signs of recovery, it has stumbled down once again. At the time of writing, bitcoin price is around $3,440 dropping by almost 3.38% in the past 24 hours.

Since bitcoin’s market capitalization makes up a huge chunk of the overall crypto market cap, price fluctuations of bitcoin affect the entire crypto market. During its peak days, bitcoin alone had a market cap of over $300 billion whereas now, as a result of the bear run of the crypto market that has continued on for quite some time, the entire crypto market cap is floating below $100 billion. Drops and spikes in bitcoin’s price result in similar behavior for a lot of other cryptos floating around as well. Besides bitcoin, XRP is down by almost %5.78 in the past 24 hours and ethereum (ETH) is down by %7.06. The entire crypto market cap is falling down.

The volatility associated with bitcoin’s price is a serious issue in the eyes of many experts in the game. It is one of the major reasons why bitcoin has not gotten the widespread adoption that it should have obtained on an official level up until now. United States Securities & Exchange Commission (SEC), the regulatory body in charge of approving a bitcoin exchange-traded fund (ETF), has not yet green lit the bitcoin ETF owing to the major issues that are associated with bitcoin, one of them being the volatility. A lot of positive developments seem to be waiting on the side if a bitcoin ETF gets established, especially in terms of its price, but as of now, things don’t seem too good.

Owing to the volatility associated with this world, people often refrain from using bitcoin as a source of making payments. Since bitcoin price fluctuates very often, it often becomes natural not to use it as a payment method. If bitcoin is to gain mainstream adoption in the real world, it seems that something needs to be done regarding the uncertainty associated with bitcoin’s price. Bitcoin price fluctuations shake the entire crypto market cap. In order to build a better reputation for this asset in the financial arena, the issue of volatility needs to be tackled as soon as possible, otherwise, the crypto space might turn too uncertain and too risky for the general public to enter.

SEE ALSO: Bitcoin Price Journey From 2009 to 2019 – The 10 Years Challenge of Crypto

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Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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