Crypto Market Plummets After a Wild Week
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.”
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.
I always feel relieved after these big liquidations of leveraged longs on crypto. Cleans up the market and this time, I’ve actually got cash to add to my positions! Happy days. Adding far out the risk curve – community token ecosystems and also trading platforms and Doge because
— Raoul Pal (@RaoulGMI) April 19, 2021
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.”
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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