After the all-time high record reached earlier this week, Bitcoin suddenly fell more than $5,000 in value in the last 24 hours. The industry also reached an all-time high this year, reaching $2.6 trillion and over as several other cryptocurrencies along with Bitcoin saw a boost. However, the last 24 hours saw a sharp decline in the value even below the $60,000 level.
There had been previous conversations regarding the pros or cons of the crypto industry and its investors. As more people get involved and resources are tapped into, more useful data is being identified regarding the phenomenon. More recently, the discussion is surrounded by the ‘systemic risk’ of the market, due to its investor concentration.
The research conducted by the National Bureau of Economic Research suggests that having a concentrated few interested in the market is a weakness to the overall market.
The Bitcoin analysts involved in the research, Igor Makarov and Antoinette Schoar wrote, “Our results suggest that despite the significant attention that bitcoin has received over the last few years, the bitcoin ecosystem is still dominated by large and concentrated players, be it large miners, bitcoin holders or exchanges,”
Adding,” This inherent concentration makes Bitcoin susceptible to systemic risk and also implies that the majority of the gains from further adoption are likely to fall disproportionately to a small set of participants.”
Bitcoin itself is the most popular and highly valued cryptocurrency, even though there are several other options for interested people to look into. The last rise in the value had so many more prospects for the industry, but the sudden crash of thousands within a few minutes also illustrates the unpredictability of its fluctuation.
Ethereum, Solana, and Cardano are among some other major names in the crypto market that also saw a fall. Dogecoin, however, is up by 42% and above according to CoinMarketCap’s price index.