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

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Why HBAR Price Dips 30% after 100% surge

Having recently made headlines for being one of the best performers in the crypto market, Hedera Bar (HBAR) is also in the spotlight today. However, this time, the attention is on its sudden flip to become the top crypto loser today. Just a day ago, HBAR had skyrocketed in value by 100% with extreme trading activity recorded by 6494.51% increase in trading volume . This left investors and the entire crypto community scratching their heads, trying to unravel the reasons behind the impressive performance. However, it seems the puzzle has flipped sides, as HBAR price nosedives 30% within 24 hours. Why is this so? Let’s delve into what’s happening.

Market Performance of HBAR Price

Market Performance of HBAR Price

The current HBAR price is $0.1134, having  experienced a drop of over 20% in its value, indicating a significant drop in investor interest and trading volume. Even though the token has witnessed an increase of 45.20% in its price over the past week, the weekly gain has declined from the 73.97% rise it recorded yesterday.
However, reflecting on the previous year, HBAR has shown substantial growth, soaring by 92.77%.

The Hedera HBAR token has also seen a  drop in its market cap from $5 billion to record approximately $4 billion. This decline by approximately $1 billion has pushed its position from 23rd to 25th, in the crypto market, according to CoinMarketCap.

HBAR has experienced a sudden decrease in trading volume, from skyrocketing by 6494.51% to nosediving by 45.7% today, to reach $1.5 billion. Having hit an all-time high of $0.5701 three years ago, its value has since dropped by 80.16%.

Top Reasons HBAR Price is Falling

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

1. Misunderstood Endorsement

The 30% decline in the value of Hedera token HBAR may have been caused by confusion regarding BlackRock’s role in the tokenization project on the Hedera Hashgraph platform. At first, HBAR experienced a dramatic increase of more than 100% after the HBAR Foundation announced that, blockchain companies Archax and Ownera, had tokenized BlackRock’s ICS U.S. Treasury Fund shares on the Hedera platform.

Nevertheless, a BlackRock spokesperson later explained that the company does not have any business ties with Hedera and did not select the platform for tokenizing its funds. This clarification refuted the incorrect belief that BlackRock was involved in the tokenization process.

The misunderstanding probably triggered a market response when investors saw BlackRock’s support of the Hedera platform as a big endorsement. Consequently, once it was evident that BlackRock was not directly involved, investor perception may have changed, causing a significant drop in HBAR’s value.

In addition, Archax CEO Graham Rodford further clarified that although BlackRock was informed about the tokenization initiative, the decision to tokenize the fund’s shares on Hedera was ultimately made by Archax. This detailed explanation in an interview with Jesus Martinez, provided further clarity on the situation. However, the initial confusion had already affected market dynamics, leading to the decrease in HBAR’s value.

2.Global Crypto Market Crash

HBAR price is dropping due to the overall crypto market crash. Major cryptocurrencies like Bitcoin and Ethereum have also seen declines. The global cryptocurrency market’s value has decreased by 4.28% in the last 24 hours, with a total trading volume of $84.52 billion.

The sudden downward in the market can be attributed to geopolitical tensions in the Middle East and the liquidation of long positions. Recent military strikes in Southern Lebanon have increased uncertainty, leading investors to seek safer assets.

Additions long positions worth $87.61 million were liquidated in just 12 hours, with total liquidations reaching $102.22 million. Bitcoin and Ethereum recorded large liquidations, with a total of $211.97 million in liquidations in the past 24 hours. This mass liquidation has further driven down prices in the market.

Samourai Wallet co-founders Keonne Rodriguez and William Hill were arrested for money laundering by the US Justice Department, facing charges related to illegal transactions worth over $2 billion. Rodriguez could face up to 20 years in prison, while Hill faces a potential five-year sentence. The arrests have caused concern and uncertainty in the crypto community.

Following the recent Bitcoin halving on April 20, investors were prepared for market fluctuations. The post-halving volatility, combined with regulatory actions and geopolitical tensions, has contributed to the current market crash, intensifying price drops. Investors expected short-term fluctuations after the halving, but external factors have amplified the market’s instability.

These external factors have led to the overall price drops across the crypto market, with HBAR included, as investor confidence wavers.

Conclusion

In the world of cryptocurrency, sudden and frequent fluctuations are perceived as normal rather than rare. Market volatility is highlighted by the current price fluctuations of Hedera Hashgraph token, going from a 100% jump to a 30% drop. Misinterpretation about BlackRock’s participation in a tokenization initiative on the Hedera network, combined with factors like global conflicts and legal measures, have definitely impacted the price fluctuations of HBAR. As investors face these uncertainties, it is becoming more and more important to stay updated, be vigilant, and be ready for surprises in the constantly changing world of cryptocurrency.

The post 2 Reasons Why HBAR Price Dips 30% after 100% Surge appeared first on CoinGape.

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