Bitcoin collapsed by a third, dragging the rest of the cryptocurrencies with it.
“Now in TikTokker, 14-year-old experts with three months of experience advise at what levels to buy and sell bitcoin, and pensioners talk about mining on federal TV channels. This, of course, is a sign of an unhealthy market, and yesterday it recovered.
” experts comment on the strongest collapse in the cryptocurrency exchange rate. In Tatars tan, crypto exchangers are trying to cope with a fourfold increase in applications, and the developer of a crypto exchange fixes the golden time for ether mining. About who blew off the crypto bubble, whether to wait for the continuation of the course correction and where it is better to invest now – in the material “BUSINESS Online”.
The price of bitcoin has halved, the market has lost a trillion dollars
On the eve of the rollercoaster, which periodically arranges the rate of bitcoin, went into a steep fall. In the morning, literally in just two and a half hours, the cost of the most famous cryptocurrency fell by 6%, to $42.9 thousand, according to Coin Gecko, and in just a day.
bitcoin sank by a third. On the largest exchange in terms of volume, Finance, the value of this cryptocurrency, as of 16:13, decreased by 29%, to $31.4 thousand. During the day, the lowest point was $30,000 exactly, and in total, since the April historical maximum, bitcoin has fallen in price by more than 2 times. This is the biggest drop since March last year.
However, the cryptocurrency partially came out of the peak in the evening: for example, by 20:00, the bitcoin rate rose to $39,000, and it remains approximately at this level today (on May 20, as of 10:00 Moscow time, bitcoin is trading at $40 thousand).
Bitcoin pulled other currencies with it. Thus, Ethereum (Ethereum) sank by 34.2% over the week (one-day losses of this cryptocurrency also turned out to be the largest since last March), and Shiba Inu, whose donated tokens were recently burned by Vitali Butlerin.
lost 62% of capitalization over the week. Dogecoin, which after two tweets by Elon Musk by the end of April rose 63 times since the beginning of the year, fell by 21%. Most of the other currencies also turned out to be in the red zone – against this background, one of the largest US cryptocurrency exchanges, Coin base, failed: the site did not open, and the shares of the exchange, which entered the Nasdaq in April, fell by almost 10%.
Reuters estimates that the loss of market capitalization for the entire cryptocurrency sector approached $1 trillion (according to other sources – $900 billion). RBC, citing the bib service, records that over the past day, crypto traders have lost over $8 billion, the margin positions of 726,000 users have been forcibly liquidated, and one of them is $67 million on the Hudoba crypto exchange paired with bitcoin.
Panic was felt on all levels. Thus, the co-owner of one of the largest cryptocurrency exchanges in Tatars tan, CryptoBank24, who wished to remain anonymous, said that the number of calls to him increased 4 times yesterday compared to the period when everything was quiet on the exchange.
“Yesterday and today, a lot of both sell and buy. Mostly alarmists sell, people who are afraid of a further collapse, and those who just want to fix and not waste their nerves every time they enter the exchange. There are also those who are now actively buying on the bottoms, expecting a rebound upwards. In percentage terms, about 70 percent are sold, 30 percent are bought,” he notes.
Market collapsed Elon Musk? Or maybe the Chinese?
Recall that a powerful impulse for cryptocurrencies occurred in February from $ 29-30 thousand for bitcoin. The growth trigger was the news that Tesla purchased $1.5 billion worth of coins in January. After doubling the price of the cryptocurrency, the company itself and its founder Elon Musk suddenly lost interest in it.
In March, Tesla reported selling $272 million worth of coins for a profit of $101 million. Last week, the company announced that it had temporarily suspended accepting bitcoins due to the unsustainable way they were mined. “We are concerned about the rapidly growing demand for fuel for Bitcoin mining and transactions, especially coal, the worst type of fuel in terms of emissions.
After such a tweet, investors rushed to sell assets, and bitcoin fell by more than 16%. It is strange that before buying bitcoins, Tesla did not seem to think about this aspect. By the way, electric vehicles themselves cannot be called a completely “green” product: in a number of countries.
electricity is produced from coal, resources are also needed for the production of batteries, and conditional emissions, taking into account charging losses, exceed the footprint of hybrid cars such as the Toyota Prius. The environmental friendliness factor of electric cars will increase dramatically with the massive transition to renewable energy sources, such as energy from the sun.
Musk delivered the final blow to bitcoin on May 16, posting another post on Twitter. He delighted subscribers with the news that Tesla may or has already sold its cryptocurrency investments. According to Musk, bitcoin is highly centralized and controlled by several mining companies, and mining was paralyzed due to the flooding of one of the coal mines in China. After that.
Bitcoin fell below $45,000 for the first time in three months, losing 20% of its market value. Crypto enthusiasts have long been outraged by Musk’s influence: as part of the struggle for the independence of courses from the social networks of the founder of Tesla, they have already issued the Stope Lon token. Its market capitalization, by the way, has already exceeded $22 million, and against the backdrop of recent events yesterday, the rate rose by 125%.
However, a number of experts still associate what is happening not with Musk, but with China’s attempts to minimize the influence of bitcoin and free up a niche for the digital yuan. On the eve of the account of the Central Bank of China in the national social network WeChat.
After that, the schedule of rates on the stock exchanges rapidly flew down.