Today is one of those days when crypto investors panic at the market movement as major cryptocurrencies, including Bitcoin, plummet. We tell you all the details!
A bad day for the crypto market
Today the crypto market has received a gigantic beating with total market capitalization falling by more than 10% in the last 24 hours, according to CoinGecko data.
And, in case the 10% doesn’t ring a bell, this is a loss of more than $ 200 billion for the entire crypto market.
Among the top 10 currencies, Dogecoin (-11%), Bitcoin Cash (-16%) and Binance Coin (-13%) have been the hardest hit. However, Bitcoin and Ethereum have failed to save as they have reported a reduction of 9% and 8%, respectively.
But what happened? What triggered the panic in the crypto market?
Binance is under investigation
Yeah, you read that right. One of the industry’s most relevant crypto exchanges is being investigated by both the U.S. Department of Justice and the Internal Revenue Service. This in an apparent effort to hinder users ‘ illegal business activity in the United States.
According to Bloomberg, the two U.S. agencies are investigating Binance as part of an investigation into U.S. residents. UU. that use cryptocurrencies for illegal transactions.
For his part, Changpeng Zhao, CEO of Binance, said that the crypto exchange is collaborating with regulators with the aim of fighting bad guys.
We previously reported from CriptoTendencia that the crypto exchange was being investigated by the CFTC.
Elon Musk kicks crypto leader
Elon Musk, CEO of Tesla, has earned his reputation in the crypto market by exerting pressure on cryptocurrency valuations. In such a case, yesterday Musk assured on Twitter that Tesla will no longer accept Bitcoin as payment.
Why? Well, Musk argued about energy concerns in Bitcoin. “We are concerned about the increasing use of fossil fuels for mining and Bitcoin transactions, … especially coal, which has the worst emissions of any fuelhe explained on Twitter.
Faced with the news the crypto community reacted and, the union of events, caused the price of the crypto leader to collapse below $ 50,000.
One of the most repeated claims by the crypto community was in relation to possible hypocrisy on the part of Musk. As we reported in Crypto Trend, Musk in the past showed his approval in front of an investigation by Square that concluded that Bitcoin could, in fact, promote the use of renewable energy.
Grayscale Bitcoin Trust is not spared from crypto panic
The Grayscale Bitcoin Trust (GBTC) premium fell to -20.48% on Wednesday, May 12, according to cryptocurrency data tracker YCharts.
As we previously reported, historically, GBTC has traded with a significant premium relative to the price of Bitcoin. But since the end of February, the fund’s shares plummeted and have since traded at a discount.
In a few lines…
- Rick Rieder from BlackRock reject tesla’s decision on the leading crypto, but he believes Bitcoin will face some challenges.
- Michael Saylor, CEO of MicroStrategy, added another 271 Bitcoin to its strategic reserves.