Bitcoin Falls to around £34000 this morning. Many of us woke up this morning noticing that Bitcoin had taken a dive down and are probably wondering why this had happened. Even though there could be many reasons that caused this. As we all know Bitcoin and any other crypto currency is a highly volatile asset, there can be some factors that may have caused this mornings price to tumble. Let’s start with the basics.
With many Technical Analysis Chartists out there, they’re still bearish on Bitcoin and the bull run is still in play. However, the tumble in price have been noticed by these chartists. As the steam slowly escapes Bitcoin it has to go somewhere. Either back into fiat as people take some profits and gains off the table or to other platforms such as the DeFi platforms that are currently being adopted by more and more crypto users.
This can effect other currencies that are paired with Bitcoin and also the overall crypto market. As we all know ALT season is upon us and crypto traders take advantage of some huge gains sometimes by up to 100x. The gains and profits taken from Bitcoin and other top currencies are multiplied even further by the ALT coin traders to expand and diversify their crypto portfolio further.
With Ethereum, It’s a whole different ball game. Ethereum has had a great run and is looking promising for the future as they continue to work out how to lower their transaction fees. This slow but sure development has given hope to other crypto currencies to try and compete against them. After the price of Ethereum increases, so does the fees involved.
As most of the projects that are involved within the Ethereum DeFi platform Uniswap, many users have started to Pancakeswap due to lesser fees involved. Pancakeswap is basically a copy and paste of Uniswaps DeFi platfrom. With less fees involved in the Binance Smart Chain side of things many users and investors are currently moving their funds and earnings into Pancakeswap to take advantage.
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