Back Above $40K: Bitcoin Recovers After Biggest Crash In A Year

Bitcoin is back above $40K as the coin recovered from the biggest crash in a year with the supporters remaining bullish throughout Black Wednesday as we can see more in our latest Bitcoin news today.

After the market’s steepest crashes, Bitcoin is back above $40K and the crypto community remained bullish throughout the blood-red market. The price of BTC plummeted as low as $30,415 as per the data from CoinGecko and the vast majority of the altcoins followed the trend as well with about $500 billion wiped off the entire market in less than a day.

ARK buying more $TSLA and $COIN https://t.co/LzP6EQalbf

— Eric Balchunas (@EricBalchunas) May 20, 2021

A lot of people blamed the sell-off on the news of the ban from China but that isn’t exactly what happened. A few days ago, a group of Chinese banking and payments associations reiterated the same rules that have been in place since 2017 and China’s central bank re-shared their warnings on social media. SpaceX CEO Elon Musk kicked off the bearish streak for BTC a week ago when he decided that Tesla will not take BTC payments for the cars. Elon Musk continued to tweet more criticism of BTC over the next few days while touting Dogecoin as a sustainable alternative.

The massive sell-off drew fresh waves of crypto criticism from the legacy media and financial institutions that allow BTC skeptics to take a victory lap. The vice president of the European Central Bank Luis de Guindos said that crypto isn’t a real investment:

“This is an asset with very weak fundamentals and that is going to be subject to a lot of volatility.”

Amidst the chaos, the members of the crypto community remained unfazed. The partner at Castle Island Ventures Nic Carter said that Bitcoin’s volatility is an endemic feature of the asset class and reflects on the future adoption trends but he also believes that while Musk’s recent comments on BTC played a role in the crash, this was not the only reason that the coin’s price dropped.

"Volatility is an endemic feature" of Bitcoin, says Coin Metrics co-founder Nic Carter.

So what's driving all of this crypto volatility? Carter speaks with @emilychangtv and @TheStalwart https://t.co/g4sOAJB3gi pic.twitter.com/IQF3nzbV2R

— Bloomberg TV (@BloombergTV) May 19, 2021

The CEO of UK-based crypto exchange CoinCorner Danny Scott agreed that the newcomers can get scared as they witness their first dramatic dip in the BTC price but this is normal for a bull run he said:

 “Fundamentals have not changed. Infrastructure building has not changed. Bitcoin becomes stronger from these events. Focus on the long term, not the short.”