All Major Cryptocurrencies Down, Can We Call It The “Musk Effect”?

All Major Cryptocurrencies Down, Can We Call It The “Musk Effect”?
May 18
08:41 2021

While it is too early to label the market bearish, the fact is all major cryptocurrencies continue to be in the red zone. Led by Bitcoins, all top tokens by market cap have been demonstrating a downward trend. Unequivocally, both crypto pundits and enthusiasts agree that the current slowdown is nothing but the Elon Musk effect.

After dropping down to $43.5k, Bitcoin at press time has recovered very slightly and is trading just above $45,000. However, the 24 hours change still shows an 8.4% drop at press time. Ethereum follows Bitcoins. After dropping to $3400s it is ticking up and is currently floating above the $3,500 mark. However, the 24-hour change shows an 8.88% drop in prices. Similarly, the Binance coin, the third biggest by market cap, is down by 10.74%.

Road To Recovery

Hopes are high that Bitcoins will soon recover from the “Musk Effect” as it has always bounced back after such drops, on multiple occasions in the past 10 years. However, the fact is it seems challenging as the energy woes of the leading tokens are concerning.

Some experts claim Bitcoins to drop further and then hit a saturation point but others are speculating the leading token to stabilize impermanently around $55,000. The hopefuls are still holding on to a $100k plus Bitcoin by the end of 2021.

For Ethereum, the path seems more clear and it is safe to claim that Ethereum will be ahead in the race in terms of an increase in prices. Also, the new protocols will help decrease Ether’s carbon footprints as they will make a gradual shift from the PoW consensus mechanism to a greener PoS protocol.

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Utsav K.

Utsav K.

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