This week we witnessed the collapse of bitcoin, which recently just passed the $100,000 mark. Now its price has gone down again, and as is often the case, has pulled most altcoins down with it. This again confirms how much the crypto market depends on the main player.
Causes of Bitcoin's Collapse.
The main reason for BTC's collapse was the news of US government interference. The impact of such statements did not take long to sink in: bitcoin immediately began to lose value. This, of course, caused panic in the market and strongly influenced the behavior of investors.
Altcoins suffered too.
As you might expect, the fall of bitcoin couldn't help but affect altcoins. Many of them lost a significant portion of their value. This again proves how interconnected everything is still in the crypto market. When BTC loses ground, the other cryptocurrencies often go after it.
What to expect next?
It's hard to say now when the market will recover again, but it's clear that government decisions can have a serious impact on the bitcoin exchange rate. Which means altcoins will continue to depend on its fluctuations, as they always have.
As a result, this week we saw again how the bitcoin collapse has affected the entire cryptocurrency ecosystem. All of this reminds us how much the cryptocurrency market remains volatile and dependent on external factors.