Crypto Takes Huge Hit

Crypto Takes Huge Hit

Guilherme Sorbara, Journalist

Recently you may have heard about Dogecoin, Bitcoin, Ethereum and more. In case you haven’t these are all Crypto currencies that have been rising immensely over time. However these Crypto currencies have been taking huge hits to its value. The value of Dogecoin went up by 2000% in 3 weeks, reaching an all time high of 0.72 per share, but dropped in over half the value in only 10 days. Bitcoin’s highest value was 63 thousand dollars per share, in very little time it dropped to 30 thousand dollars per share. Ethereum reached an all time high of 4 thousand dollars per share and dropped to 2300 dollars per share in only 7 days. This has happened due to one very important person.

Before I explain how it took a huge hit I have to explain how the stock market  and crypto works so you can have some background information. The stock market and crypto currency have many ways of investing. For example, some of them are just buying shares of a stock (a part of the company you are investing in) and hoping the stock will go up so you make more money. The stock market can also be used to make “call options”. If you bet the call option quote will go down and indeed goes down, you will make money. If you bet the option will go down and its quote goes up, you lose money.

Now that you know how the stock market works I will explain how this event happened. Recently Crypto currencies have been taking huge hits due to one guy, his name is Elon Musk. Elon Musk is the owner of Tesla and caused the huge rise in value of Dogecoin. This event happened due to the fact that Elon Musk tweeted out that they weren’t taking bitcoin as payment for Tesla, this made people believe that he had abandoned bitcoin. This made people start to sell their shares causing the crypto to fall in immense value.