Today the entire crypto market is stained with red since there is not a single TOP 100 cryptocurrency that has not suffered dramatic drops. The avalanche devastates the entire market no matter what. Is Bitcoin the culprit?
A disastrous day in the crypto market
The feeling of panic experienced today, Wednesday, May 19, 2021, resembles the Black Thursday of 2020 when COVID-19 swept the world. Today the avalanche experienced in the crypto market was not unleashed by COVID, but still, we ended a gloomy day.
Starting with the leading crypto, Bitcoin, which plummeted to $ 30,000, removing more than $ 500 billion from the currency’s maximum market value. And, despite having managed to regain a level much closer to $ 40,000, crypto is far behind the level it traded last week.
In this way, Bitcoin for its part has lost 26% during the last 7 days. However, the point is that the avalanche did not exclusively affect the crypto leader, but swept away most of the Altcoins.
Among them Ethereum (ETH), crypto that recently traded above $ 4,000 and, after a loss of 21%, is positioned at $ 2,600. And, like this, multiple cryptocurrencies have collapsed.
What happened? The truth is that in the crypto market it is difficult to determine. However, comments from Tesla CEO Elon Musk could play a key role.
However, as we previously reported, Willy Woo, a leading crypto analyst, assures that Bitcoin’s bull run is not close to over. Likewise, investor Raoul Pal warns that this is not a time for concern.
In fact, Michael Saylor, CEO of MicroStrategy, emphasized that he has not sold a single satoshi and has no plans to do so either. And for his part, Anthony Pompliano reminded the crypto community that volatility is the name of the game.
The avalanche sweeps even outside the crypto market
Unsurprisingly, all companies that have gained exposure to the crypto leader have been affected by what happened in the crypto market.
Thus, MicroStrategy (MSTR) shares have decreased by 6.6% over the last 24 hours. However, the price fell to a low of $ 415. Also, Coinbase (COIN) shares have fallen by 5.9% over the last 24 hours.
And, like these, the stocks of Tesla, Square and PayPal have suffered the effects of what happens in the crypto market.
Increase the availability of Bitcoin on exchanges
Yesterday Lex Moskovski, chief investment officer at Moskovoski Capital, shared data noting that 22,917 BTC were transferred to crypto exchanges in just 1 hour on Tuesday.
In this way, Moskovski stressed that crypto investors are afraid and, interestingly, this one-hour inflow is rival only to the one observed in March 2020.
Coinbase and Binance presented issues during crypto market crash
Several major crypto exchanges presented problems throughout the day, essentially as a consequence of a high flow of people on the platforms.
In particular, Coinbase reported throughout the morning to be presenting ” intermittent downtime.” While Binance decided to pause Ethereum-related token withdrawals. However, subsequently Binance report that withdrawals had been resumed but with an increase in gas rates.
JPMorgan sees Bitcoin at $ 140,000
Despite the terror experienced today, it seems that we can see the light at the end of the tunnel. In this case it has been JPMorgan that has raised the spirits by stating that Bitcoin is on track to reach $ 140,000.
Thus, in the note released yesterday, JPMorgan analysts raised that institutional investors are returning to gold, reversing a major bullish crypto market action, according to CNBC.
Nevertheless, JPMorgan maintains its previous forecast and believes that the crypto leader has what it takes to be valued at $ 140,000.
In a few lines…
- BlockFi mistakenly deposited large amounts of Bitcoin into users ‘ accounts.
- Wells Fargo could soon join the crypto market by offering a product to its wealthy investors.
- In the latest survey of Bank of America fund managers argue that “Long Bitcoin” is the busiest trade.