Bitcoin crashed in May 2017, here is why

Early risers on May 25, 2017 were shocked to see bitcoin price going down right spiral. As many experts predicted, the bitcoin bubble had bursted and the entire crypto currency market was shaking as if a huge earthquake had struck their place. So why did bitcoin crash?

bitcoin crash

Earlier this week, the bitcoin crossed 2000 dollar mark and increased more than 700 dollar in just 4 days and this rose some concerns of euphoria – very similar to what had happened at the dotcom bubble.

Fred Wilson, co-founder of Union Square Ventures said that the currency just was not ready for it. Majority of people still have no idea about this blockchain currency and right now, it is not very rewarding to transact with bitcoin, Ethereum or other crypto currencies which are all on the rise lately.

The currency is now imploding and there is something called price correction going on right now. It is unclear when will this correction stop. Rumor has it that bitcoin will come back to 1300-1400 dollars. The price rose chiefly because of the WannaCry ransomware and similar cyber attacks where the attacker asked for money in form of bitcoin from the user.

Now that the people have started recovering from the effects of WannaCry ransomware, they have started get rid of this virtual currency, leading to its ultimate downfall.

There was a lot of speculation around bitcoin hitting 4000 dollar mark last week and everybody chimed into the race to become a millionaire quickly. We suggest buyers not to seek short term benefits of it as bitcoin, Ethereum and other crypto currencies are still in young state. There is a lot of volatility.