2 Reasons Why HBAR Price Dips 30% after 100% Surge

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Lately, I’ve kept a close eye on the cryptocurrency market, and I find myself particularly drawn to Hedera Hashgraph (HBAR). Intrigued, I might add. Just the day before yesterday, something truly astonishing happened – HBAR experienced an unprecedented surge in value, skyrocketing by an astounding 100%. This sudden increase in worth came hand in hand with extreme trading activity that left me and many others within the crypto community scratching our heads in bewilderment. Why such a remarkable performance from HBAR? That’s the million-dollar question on everyone’s mind.

I’ve been making waves in the crypto world lately, with Hedera Bar (HBAR) being hailed as one of the top performers. But today, I find myself in a different spotlight – that of being the biggest crypto loser. It’s hard to believe, but just yesterday, my value surged by an astounding 100% and trading activity saw a massive increase of 6494.51%. This left me feeling elated and had everyone wondering what was behind my impressive performance.

Market Performance of HBAR Price

2 Reasons Why HBAR Price Dips 30% after 100% Surge

I’ve noticed that the current HBAR price is at $0.1134, which represents a steep decline of more than 20% from its previous value. This significant drop suggests a decrease in investor enthusiasm and trading activity. Despite this week’s 45.20% price increase, the weekly gain has taken a turn for the worse, falling far short of the impressive 73.97% rise it boasted just yesterday.

I’ve noticed that the market capitalization of Hedera HBAR token has dropped around $1 billion, causing it to slide from a ranking of 23rd to 25th in the crypto market based on CoinMarketCap’s list.

I’ve noticed a drastic change in HBAR‘s trading volume lately. It soared up by an astounding 6494.51% just to plummet by 45.7% today, leaving us with a $1.5 billion market cap. Three years ago, HBAR reached its peak price of $0.5701, but since then, its value has significantly dropped by 80.16%.

Top Reasons HBAR Price is Falling

Various factors are behind the dropping of Hedera Bar price today.

1. Misunderstood Endorsement

I recently noticed a disturbing 30% drop in the value of Hedera’s HBAR token. This downturn might be attributed to uncertainties surrounding BlackRock’s involvement in the Hedera Hashgraph platform’s tokenization project. Initially, there was an astonishing surge of over 100% in HBAR following the announcement made by the HBArch Foundation. They revealed that Archax and Ownera had tokenized shares from BlackRock’s ICS U.S. Treasury Fund on our platform. However, it seems that clarity regarding BlackRock’s role was lacking, causing confusion among investors and potentially contributing to the token’s decline.

I initially believed that BlackRock was part of the tokenization process with Hedera based on some reports, but later on, a representative from BlackRock made it clear that the company doesn’t have any business connections to Hedera and didn’t choose their platform for tokenizing funds. This clarification corrected the misunderstanding that BlackRock was involved in the tokenization process itself.

When I discovered the misunderstanding about my support for Hedera, investors likely overreacted, interpreting it as a major endorsement from BlackRock. However, once it became clear that my involvement was not as direct as they assumed, investor sentiment may have shifted dramatically, leading to a substantial decrease in HBAR‘s value.

I’d clarify that while BlackRock was informed about Archax’s tokenization initiative, the decision to tokenize the fund’s shares on Hedera was solely made by Archax’s CEO, Graham Rodford. In an interview with Jesus Martinez, he elaborated on this point, adding much-needed clarity. Regrettably, the initial uncertainty surrounding this news had already influenced market behavior, resulting in a drop in HBAR‘s value.

$HBAR Recently Went Up 100% In A SINGLE Day Before Correcting
After news that @BlackRock’s ICS Money Market Fund would be tokenized on @hedera
I had the privilege of having Andrei Sabo, CEO and co-founder of ArchaxEX, on my program. ArchaxEX is the team behind the tokenization of BlackRock’s Money Market Fund on Hedera. They explained it all to me!
— Jesus Martinez (@0xJesusMartinez) April 24, 2024

2.Global Crypto Market Crash

I’ve noticed a drop in HBAR price lately, and it seems this trend is affecting major cryptos like Bitcoin and Ethereum as well. The global crypto market value has decreased by 4.28% over the past 24 hours, amounting to a total trading volume of $84.52 billion.

I believe the unexpected market drop can be linked back to heightened geopolitical tension in the Middle East and the unwinding of long investment positions. The latest military actions in Southern Lebanon have brought about a sense of unease among investors, causing them to shift towards more secure assets.

I experienced significant losses in my long positions on assets worth a total of $87.61 million within a mere 12-hour span, with the total value of liquidations amounting to $102.22 million. Both Bitcoin and Ethereum witnessed substantial liquidations, summing up to $211.97 million in the last 24 hours. This extensive wave of liquidations has intensified downward pressure on market prices.

I, along with my Samourai Wallet co-founders Keonne Rodriguez and William Hill, were recently taken into custody by the US Justice Department on allegations of money laundering. Our actions are said to be connected to illegal transactions valued at over $2 billion. If found guilty, Rodriguez could be looking at a sentence of up to 20 years in prison, while I may face a maximum of five years. The crypto community is expressing apprehension and uncertainty following these arrests.

After the Bitcoin halving on April 20th, I and many other investors braced ourselves for potential market swings. The volatility that ensued following the halving, compounded by regulatory decisions and geopolitical turmoil, has led to the current market downturn, magnifying price declines. Although we anticipated some short-term instability post-halving, external factors have significantly intensified the market’s volatility.

I’ve noticed that external factors have caused prices to decrease throughout the crypto market, including HBAR, leaving me and many other investors feeling uncertain about our investments.

Conclusion

In the thrilling realm of cryptocurrency, where I’m an active participant, unexpected and frequent price swings are considered the norm rather than exceptions. The latest rollercoaster ride of Hedera Hashgraph token’s value serves as a vivid illustration, with prices surging up by 100% only to plummet down by 30%. Misunderstandings regarding BlackRock’s involvement in a tokenization project on the Hedera network, coupled with external factors like global conflicts and regulatory measures, have significantly influenced these price shifts. As an investor, it is crucial for me to remain informed, stay alert, and be prepared for the unexpected as the dynamic world of cryptocurrency continues to evolve.

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2024-04-25 13:38