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The extreme price volatility on Wednesday caused major cryptocurrency exchanges to cease operations and dominate Wall Street.
It plunged 31% in the morning. Soared 33% in the afternoon.
This is the crazy experience of Bitcoin attracting investors on Wednesday, reducing its value by billions of dollars. Afterwards, the comments of some famous supporters helped Bitcoin to be promoted in a crazy rebound.
The extreme price fluctuations of an asset known for its turbulence caused major cryptocurrency exchanges to be disrupted and dominate Wall Street. The commotion sparked a tweet by Elon Musk, suggesting that Tesla was not among the sellers, while Cathie Wood said her display was flashing “surrender”, making the numbers The token is “sold.” Justin Sun, a technology entrepreneur who created the cryptocurrency platform Tron, tweeted that he bought $152 million in bitcoin for a coin price of approximately $37,000.
After 9 a.m. New York time, the token fell into a whisker of $30,000, reducing the loss to 7%, and briefly exceeded $40,000 at 1 p.m. As of 4:30 pm the next day, Ether had fallen 9.7% to close to $39,300, which had fallen by more than 40% before cutting it in half.
FRNT Financial CEO and co-founder Stephane Ouellette said: “The history of these assets is full of aggressive rallies and disturbing sell-offs.”
They rarely happen in a single session. On a day when stocks and commodities are also under pressure, volatility dominates Wall Street, and the Federal Reserve (Fed) will release its latest meeting minutes. From Coinbase Global Inc. to Binance, frantic selling on some of the largest exchanges triggered a shutdown. #Cryptotrading is very popular on Twitter, and critics and fans alike have one-tenth of the attention of this rout.
Tesla CEO Musk made a crazy move last week. Bitcoin plummeted when it announced that automakers would not accept payments, but when he stated that the company had no plans to sell its company’s cryptocurrency assets, the price of Bitcoin plummeted. He seemed to suggest in a tweet on Wednesday that Tesla did not sell products.
Tesla has
-Elon Musk (@elonmusk) May 19, 2021
Last week, when Musk withdrew his plan to accept Bitcoin as the company’s car, turmoil broke out in the cryptocurrency field. Sales resumed over the weekend, when the luxurious CEO seemed to suggest that Tesla might want to sell shares held by his company, but after he tweeted that the automaker had no plans to sell, there was a reversal. A statement issued by the People’s Bank of China on Tuesday reiterated that digital tokens cannot be used as a payment method to increase selling.
Although all the reasons were the direct cause of this rout, there was no explanation for the crazy rout on Wednesday morning, when the coin fell thousands of dollars in a matter of minutes. As investors attract cryptocurrencies in search of a quick recourse to exit, the selling gives way to more selling. When Bitcoin fell below its average price in the past 200 days, the sell-off accelerated.
Chart observers pointed out that as the tokens sold off, key technical indicators were reflected. Bitcoin rebounded from the $30,000 level, and many people are waiting to see if it can break through the 200-day moving average. If not, it may retest Wednesday’s low.
Cryptocurrency-related stocks also fell. Coinbase’s stock price fell by nearly 13% at one time, while Marathon Digital Holdings Inc. (Marathon Digital Holdings Inc.) fell as much as 16%.
After Tesla’s announcement in February, Bitcoin began a months-long rally, soaring to a peak of $64,870, largely due to the company’s support.
Annihilate
At that time, Tesla’s acceptance was hailed as a watershed for the token, and many cryptocurrency circles saw it as another step in the development of the token.
After Musk’s heinous tweets, all of this was erased.
Ulrik Lykke, executive director of crypto hedge fund ARK36, said: “In fact, this is not the first time that Elon Musk’s tweets have been unstable. Frankly speaking, this is wrong.” “The cryptocurrency market is extremely emotionally driven. , Their participants tend to overreact to events they consider to be negative.”
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