Mooners and Shakers: It’s crypto carnage as Bitcoin slides to 10-month low and altcoins take a beating
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Having fun yet? Billions of dollars continue to pour from the crypto market in one of the biggest routs it’s seen in quite some time.
Both Bitcoin (BTC) and Ethereum (ETH) are now down more than 50 per cent from their respective all-time highs, as dog coins, DeFi protocols, NFTs and more take a worse beating across the board. Which is normal to see in crypto market sell-offs. Painful for altcoin bag hodlers, but normal.
— Bitcoin/Nasdaq Master (@drei4u) May 9, 2022
Now, is there anything happening this week that could either swing things even more violently downwards… OR throw a hail Mary touchdown pass to the bulls?
Well there is the latest US Consumer Price Index (CPI) data due to be released midweek. This could be one to watch. Someone looks like they’re desperate to chat about it…
*U.S. PRESIDENT BIDEN TO GIVE REMARKS ON INFLATION TUESDAY AHEAD OF CPI/PPI DATA: CNN
— Investing.com (@Investingcom) May 9, 2022
As Kiwi/American crypto analyst Lark Davis points out, anything lower than the current US inflation data level (8.5% for year ended March) and it could give the markets a relieving turnaround.
But anything higher than that… best tense the gut for a few more body blows yet.
So everything going to hinge on the inflation data this week or what?
— Lark Davis (@TheCryptoLark) May 9, 2022
With the overall crypto market cap at roughly US$1.58 trillion, down about 5.5% since this time yesterday, here’s the current state of play among top 10 tokens – according to CoinGecko.
After a torrid weekend for crypto following the US Fed’s 0.5% interest rate hike, Bitcoin has now plummeted to its lowest level since last July, when it broke just below US$30k for a day.
Can it hold US$32k? It’s currently not looking too hopeful. Likewise, Ethereum is also the lowest it’s been in about that 10-month timeframe, breaking down below US$2,400 just now.
Looking at the top 10 chart, it tells a fairly typical crypto market sell-off picture – generally the altcoins tend to take a harder pounding. Bitcoin is in a class of its own, and to a degree, so is Ethereum.
The question is, where will the bleeding stop? Maybe the Crypto Fear & Greed Index holds some clues? Hard to tell – it’s been shivering and shaking in a corner for a while now.
But looking back to a more “extreme” moment than this one, the sentiment index hit a low of 7 around the time of the 2020 BTC Covid crash. A few months later, so began one of the biggest bullruns the space has seen.
Not saying that’s going to happen again this time around, but things have been known to get their darkest right before the dawn.
At the moment, though, it’s a dip of the lid to all the bearish analysts who’ve been predicting this dump for a while. For example…
It’s funny that people are surprised price is dumping.
Not only has TA reflected this, but fundamentals are pointing towards economic recession/depression, retail has exited in boatloads, & large whales have been selling.
— Roman (@Roman_Trading) May 8, 2022
Still, a few lone bulls can still be spotted in the wild… Here comes one now…
— TAnalyst (@AurelienOhayon) May 9, 2022
(His words… not ours.)
Sweeping a market-cap range of about US$17.2 billion to about US$775 million in the rest of the top 100, let’s find some of the biggest 24-hour gainers and losers at press time.
DAILY PUMPERS (and remarkably there are a couple)
• Waves (WAVES), (market cap: US$1.44 billion) 9%
• Zilliqa (ZIL), (mc: US$7.44 billion) +4%
• Polkadot (DOT), (mc: US$12.76 billion) -15%
• Algorand (ALGO), (mc: US$4.4b) -15%
• Shiba Inu (SHIB), (mc: US$8.87bn) -15%
• THORChain (RUNE), (mc: US$1.53b) -14%
• Tezos (XTZ), (mc: US$2b) -14%
• ApeCoin (APE), (mc: US$2.9b) -13%
• Synthetix (SNX), (mc: US$831 million) -13%
• Aave (AAVE), (mc: US$1.55b) -13%
Moving below the crypto unicorns (in some cases well below), here’s just a selection catching our eye…
• Ampleforth Governance Token (FORTH), (market cap: US$51 million) +38%
• Market Making Pro (MMPRO), (mc: US$34m) +14%
• Kujira (KUJI), (mc: US$41m) +12%
• Flex Coin (FLEX), (mc: US$325m) +8%
• Cult DAO (CULT), (mc: US$87m) +7%
• Step App (FITFI), (mc: US$109m) -30%
• LooksRare (LOOKS), (mc: US$248m) -22%
• MXC (MXC), (mc: US$204m) -19%
• Quantstamp (QSP), (mc: US$33m) -18%
• Anchor Protocol (ANC), (mc: US$459m) -17%
Heavily correlated to Bitcoin, the MSTR tech stock is down more than 22% over the past 24 hours. And it seems Microstrategy boss Michael Saylor is embracing the idea of going back to work with a former employer of his. (A joke, of course, but he apparently did once work there.)
— naiivecat (@naiivememe) May 9, 2022
Meanwhile, here are a few varied takes on the day’s action…
The three most important #crypto bell weather stocks are getting killed today. $MSTR is down 22%, $COIN is down 16% and $GBTC is down 13%. These stocks are down 74%, 76%, and 63% from their respective highs. All this with #Bitcoin still above $32K. Wait until Bitcoin crashes!
— Peter Schiff (@PeterSchiff) May 9, 2022
Ouch. Traders are getting margin called, investors are panicking.
This is where generational wealth is made. https://t.co/2nEaUKQa9D
— Ben Simpson (@bensimpsonau) May 9, 2022
"Fed hawkishness might be peaking for now, which implies Fed policy should become less problematic for stocks" – J.P.MARKKan
— zerohedge (@zerohedge) May 9, 2022
Perfect for Accumulation 👌
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) May 9, 2022
— Heidi (@blockchainchick) May 9, 2022