Crypto Market Crashes! US$1 Trillion Wiped Off In 5 Days

Virtual currencies plummeted sharply on Wednesday, May 19, leading to a massive sell-off in worldwide crypto markets. Prices of top crypto coins like Bitcoin, Ethereum, Cardano and Dogecoin has tumbled sharply. 

Combined value of nearly 10,000 crypto coins tracked by CoinMarketCap shrunk by US$ 1 trillion in less than a week, to settle at around US$ 1.3 trillion.

Bitcoin, the largest crypto token, lost as much as 29 per cent on Wednesday and was trading near US$ 30,000 apiece at around 9:30 am ET. It is now down by around US$34,000 from its all-time high of US$ 64,800 in mid-April, following the Coinbase (COIN:US, NASDAQ:COIN) listing.

The downfall was likely triggered by crypto whale Elon Musk’s tweets and China’s recent ban on financial institutions to trade in digital currencies.

Two days ago, a Twitter war broke out between Mr Musk and crypto purists because of Tesla’s (US:TSLA, NASDAQ:TSLA) bitcoin suspension over environmental concerns. Crypto analysts have been criticizing Mr Musk for being a ‘manipulator’ and causing volatility in the crypto industry. 

Crypto purists also lashed out at Mr Musk for his “pump and dump” game.

The massive slide in the market sentiment follows the continuous plummet in bitcoin price.

© Kalkine Image 2021

This week has been overflowing with crypto investor’s fear, uncertainty, and doubt (FUD). The overall crypto market plunged by as much as 45 per cent since Mr Musk tweeted the bitcoin suspension from Tesla’s payment gateway. 

The last few days have been stressful for the crypto investors, a reminiscence of the ‘2017 Bubble Burst’. 

Few optimistic analysts and digital asset managers have been calling this dip a discount for the new entrants. 

Crypto Funds Also See Massive Plunge

The Toronto Stock Exchange-listed crypto assets, including Bitcoin exchange-traded funds (ETFs) and Purpose Ether ETFs, have shrunk more than 30 per cent over the last two trading sessions.

The TSX Venture-listed crypto mining firms’ stocks have also been reeling under the same and some down by 15 per cent to 20 per cent at market opening bell.

 

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