Crypto Market Plummets After a Wild Week

Data analyzing in exchange stock market: the candle chars on display.
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After peaking at $64,841 last Wednesday in anticipation of the Coinbase IPO, Bitcoin lost approximately 14% over the weekend, dipping from $61,530 on Friday to $52,829, according to statistics from CoinMarketCap. It’s the biggest one-day drop for the cryptocurrency since February, reports Gizmodo.

See: Coinbase, the Largest US Cryptocurrency Exchange, Goes Public – ‘It Will Infect the Financial Universe with a Bad Case of FOMO’
Find: The First Coinbase Employee Was Paid in Bitcoin for Three Years

Ether, the number two crypto on the market based on value, fell approximately 17%, down to $2,011 from a high of $2,417, based on CoinMarketCap stats. By Monday morning, both currencies had recouped some of their value, with Bitcoin trading at $56,839 and rising. Ethereum reached $2,231 early Monday, according to Coindesk.

Crypto industry tracker Bybt showed that investors sold roughly $10 billion in crypto over the weekend, Gizmodo reports.

Doge to the Moon

Dogecoin, which hit an all-time high of 12 cents last week, seeing 54% gains, reached an unlikely 40 cents on the dollar over the weekend, a surge of more than 400%. The recent rise seemed to have little to do with the market, as the mem crypto, which started as a joke, rose while more respected counterparts plummeted. The coin’s value may have been driven by a series of memes from Tesla and SpaceX CEO Elon Musk, including a recent photo of artist Joan Miro’s painting “Dog Barking at the Moon,” which Musk tweeted with the headline “Doge Barking at the Moon.”

Building Wealth

See: Mark Cuban the Next Billionaire to Go All in on Bitcoin: ‘The Number of People Who Own It Could More Than Double’
Find: Musk Tweets Again and Dogecoin – a Bitcoin Rival – Skyrockets

Retail investors, notably on the Reddit subgroup r/WallStreetBets, have tried to drive the value of investments up with prompts of “to the moon.” Now, users on the r/dogecoin subreddit seem to be aiming to launch a Doge frenzy. One user wrote, “Now that $1 is an imminent reality, we should all pledge to [hold] to $10.”

Does the Weekend’s Crypto Slump Really Matter?

Market strategists aren’t reading too much into the weekend slump, according to MarketWatch.

Raoul Pal, a former Goldman-Sachs hedge fund manager, said on Twitter that a big liquidation of leveraged longs for crypto “Cleans up the market.”

See: What Are IPOs and Are They Worth Investing In?
Find: Bitcoin Reaches Record High Above $64,000

Building Wealth

Meanwhile, Matt Maley, Miller Tabak & Co chief market strategist, said that weekend trading of Bitcoin, particularly, was “very thin,” and may not be an indication of how the crypto will perform this week.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

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