Why Did Crypto Crash Over the Weekend?

It was only a matter of time before the market crashed, and it finally happened. The bull run that preceded it resulted in several coins being overvalued, although that’s not actually what caused the market to crash over the weekend. 

The cryptocurrency market dipped dramatically after Bitcoin shed over 10% in the space of a couple of hours. As is often the case, investors panicked, and this dip affected every other cryptocurrency as well. 

It was red across the board, with most coins seeing a double-digit drop in value. This included Ethereum, which was on a run that saw it break its ATH multiple times, as well as other Altcoins that were benefiting from the crypto market being on a high in general. 

The SEC Caused the Crash

Okay, that’s a bit harsh. The SEC didn’t come out and press a button to crash the Bitcoin price. However, unconfirmed reports coming out of the SEC are what caused it. 

Rumor has it that the SEC is going to start cracking down on criminal activity that involves the use of Bitcoin and cryptocurrency. 

Crypto has been popular as a method of funneling, embezzling, and cleaning criminal funds since its inception, and it seems that the SEC has had enough. 

It’s worth noting that these reports aren’t official, so it’s still speculation on whether or not it actually goes through with these plans, as well as how they could do that in the first place. 

One of the biggest selling points of Bitcoin is that it’s anonymous and hosted on an independent, peer-to-peer network. This makes it nearly impossible for any sort of authority figure to intervene in the market. 

Although, with the US increasing regulations on Bitcoin and trading, it’s entirely possible that a solution to this problem is currently in the works. 

What is Going on with Doge?

Once again, Doge has proven itself to be a coin with no value other than as a social tool for investors to joke with. 

Like what happened with Gamestop stock earlier this year, a big rally effort behind Doge has pushed its value through the stratosphere. We mean that, too, because, over the last few days, it’s seen a 500+% increase. 

This completely goes against the trend in the market right now, which is very much in panic sell mode. You can’t really say that investors are moving money out of other cryptos and into Doge, either, because if they are, then their portfolios aren’t long for this world. 

There’s an ongoing debate on whether movements like what’s currently going on with Doge are good or bad for the cryptocurrency market as a whole. On the one hand, it gets more people involved and actively engaged in trading; on the other hand, people argue that it makes a mockery out of trading. 

With cryptocurrency still in an infancy stage and trying to get itself taken seriously, movements like what’s going on with Doge can be considered disastrous. How is Bitcoin meant to install confidence in corporations and governments if the market is so easily manipulated like this?

Where We Go From Here

First things first, there aren’t many people that can argue against Doge being due a massive drop. Once people start selling, the coin is going to shred value at a rapid rate. 

As for other cryptos, we’re already seeing many of them making a strong recovery effort. It’s likely that we’re finally going to see the market correct itself after the bull run earlier this month.