The crypto market is recovering after a tough few days that have seen vast amounts of money wiped from its value.
The dramatic drops came after Elon Musk pulled Tesla’s support for bitcoin, on environmental grounds, bringing fresh attention to crypto’s relationship with climate change.
Prices then dropped further when Mr Musk appeared to hint that Tesla had sold its large bitcoin holdings. He later outright denied it – but the price had already dropped, and failed to recover.
The value of bitcoin and other currencies recovered slightly on Tuesday morning, though far from enough to neutralise those heavy losses.
Bitcoin, for example, is up 1 per cent over the last 24 hours, but still down almost 20 per cent over the last week. Similar changes were seen across the market, which was up 1.92 per cent over the last day, according to CoinMarketCap.
What is Cardano? The coin that beat the Musk plunge
A lot has been said about Cardano (or, more specifically, the Ada cryptocurrency that runs on the platform) recently. Even more was said about it last week, when it defied the gloomy crypto market to continue to do well.
Andrew Griffin18 May 2021 12:57
Cardano price bucks market trend with green credentials
Since Elon Musk’s announcement last week that Tesla would no longer be accepting bitcoin payments due to environmental concerns, only one major cryptocurrency has appeared immune to the market-wide downturn.
Cardano’s Ada cryptocurrency actually climbed to a new all-time high in the aftermath of Musk’s tweet, reaching above $2 for the first time in its history to add to its already considerable price gains in 2021.
This could be down to Cardano’s green credentials, which its developers describe as the “most environmentally sustainable” crypto platform.
Anthony Cuthbertson18 May 2021 11:56
This, from yesterday, is worth bearing in mind whether considering what the latest fluctuations might actually mean for bitcoin and other cryptocurrencies: “when in doubt, zoom out”, analysts advise.
Everything depends on how much of a macro scale you’re looking at things on.
Andrew Griffin18 May 2021 09:07
Bitcoin momentum ‘still up’
Bitcoin has rebounded slightly overnight, returning back above $45,000. Transaction volumes also remain high, and some analysts appear hopeful that the cryptocurrency still has upward momentum on its side.
The pseudonymous PlanB, whose stock-to-flow model maps bitcoin’s previous bull and bear markets, has compared the latest dip to similar patterns seen in 2013.
Bitcoin’s recovery appears to have helped other leading cryptos, with Ethereum (ether), dogecoin and bitcoin cash all up by between 3-7 per cent since yesterday, while Ripple (XRP) is up nearly 10 per cent.
Anthony Cuthbertson18 May 2021 07:14
Bitcoin price slide continues
Bitcoin has now fallen below $43,000, with investors hoping there is solid resistance at $40,000.
The last time BTC fell this low was back in February, when a flash crash saw it plummet in price before soaring up above $60,000 just two weeks later.
Market analysts appear hopeful that a similar pattern can be followed by bitcoin, and alternative cryptos in general, despite the power demonstrated by Elon Musk to move the market so drastically with just a single comment. Here’s what one expert had to say:
Anthony Cuthbertson17 May 2021 19:45
Ethereum co-founder ‘burns’ billions of dollars in viral dog themed cryptocurrency
One of the creators of ethereum has “burnt” billions of dollars in shiba inu-themed cryptocurrency, saying that he did not want to hold onto the viral currency.
Vitalik Buterin – who is the youngest crypto billionaire in the world – moved the coins into a dead wallet address, effectively destroying some 41 per cent of the currency that was in circulation. He held on to a small number of the coins and intends to give them to charity, as he recently did by donating to the Indian covid response.
Andrew Griffin17 May 2021 18:34
Will bitcoin recover?
Is the current drop in bitcoin’s price terminal, or at least going to last for a while? Here’s the advice from experts – “when in doubt, zoom out”.
Andrew Griffin17 May 2021 16:18
Asset managers say they are steering clear of cryptocurrencies
“Our stance with clients is the 10-foot pole rule: stay away from it,” Jason Pride, chief investment officer of private wealth at Glenmede, told the FT. “I don’t think the Fed and other regulators are fans of the current market structure for cryptocurrencies.”
Even the more positive asset managers expressed reservations about whether bitcoin would be a safe investment.
“We refer to bitcoin as an aspirational store of value and it’s an adolescent in terms of its development due to the extreme volatility,” said Tom Jessop, head of digital assets at Fidelity, the paper reported. “Some investors are willing to accept the volatility as they see bitcoin as a long-term venture opportunity.”
Andrew Griffin17 May 2021 15:06
Musk tweet stops but doesn’t reverse plunge
It’s been a while since Musk’s tweets this morning. While they helped to stop the plunge, they haven’t done anything to reverse it – the price is still down 9% over the last day, and the market is down 8.24%, according to CoinMarketCap.
Andrew Griffin17 May 2021 11:25
Musk suggests Tesla may have sold bitcoin holdings – then denies it
Musk has denied it. That helped steady the price – but didn’t bring back any of its losses over the last day. Bitcoin is down 8.4 per cent over the last day, and the market as a whole has dropped roughly the same amount, according to CoinMarketCap.
Andrew Griffin17 May 2021 08:58