Bloodbath: Crypto markets have now shed over $US1 trillion in 12 days
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Crypto markets are a sea of red this morning after word of another Chinese crackdown fuelled the bloodbath early Saturday.
Bitcoin was trading at just over US$35,000 around 11am AEST, down 8.3 per cent from 24 hours ago, while Ethereum was changing hands for around US$2,100 ($2,750), down 11.2 per cent.
Most top 100 cryptos were down by double-digits and some of the hottest coins have lost more than half their value in the past seven days.
Terra has dropped more than 70 per cent, while THORChain, Fantom, Polkadot and Avalance have fallen close to 60 per cent. Nem (XEM) and Bitcoin SV are even down for the year.
The total crypto market capitalisation has dropped to just US$1.4 trillion this morning, from US$1.8 trillion on Friday, and down from a peak of US$2.5 trillion on May 12, according to Coinmarketcap.
The market had been showing signs of recovery Friday morning, but things changed shortly after midnight, when China’s Financial Stability and Development Committee announced a crackdown on Bitcoin mining and trading activities.
BTC plunged from over US$41,000 to around US$35,000 by 7am AEST Saturday. It recovered to US$38,000 by Sunday afternoon only to drop again overnight, trading as low as just over US$31,200 around 3am AEST today.
On Crypto Twitter, there was debate over what would happen next.
I say this honestly: I have traded many bear markets, and what we are seeing right now is capitulation. I do believe people will regret the decisions they will be making in the coming weeks..#Bitcoin
— Daniel📈 (@ChartChampions) May 23, 2021
— Eugene Ng 🌊 (@Eug_Ng) May 23, 2021
Pumpers who assured investors #Bitcoin would never crash again now claim the crash is healthy and necessary to purge the market of excess speculation. They say China banning Bitcoin as other governments impose stricter regulations is bullish. Denial ain’t just a river in Egypt.
— Peter Schiff (@PeterSchiff) May 23, 2021
Compared to the 2017 bull market, this correction looks surprisingly similar. Especially if we compare the days after the halving, it is almost identical.
— The Moon 🌙 (@TheMoonCarl) May 23, 2021