Crypto Market Snaps After Coinbase-fueled Hype Week

by -
Photo: Dan Kitwood (Getty Images)

After the hype leading to the Coinbase direct listing this week saw the price of cryptocurrency rise, the market took a long time over the weekend. The biggest drop in token price since February, prior to slight rebund, according to the cryptoasset prices tracking site, CoinMarketCape, is Bitcoin prices tanked by about 14% in 24h from $61,530 to $52,929.

Other popular cryptocurrencies prices also plunged. Ether, who is second only to Bitcoin, went down in 24 hours from $2,417 to $2,011 by approximately 17 percent. By Sunday night, those tokens had recovered somewhat with Bitcoin and Ether falling by around 9% and 8% in the last 24 hours, respectively. According to data from the cryptor industries tracker Bybt, during the so-called flash collapse cryptocurrency settlements totaled approximately $10 billion.

Funny enough, the only coin which gained value during the weekend was Dogecoin, a token which started out as a joke, but recently became popular. The only coin that gathered a high profile was Dogecoin. The Dogecoin price increased by more than 400 per cent last week and for the first time amounted to 40 cents. And although it is not likely to enrich anyone soon, the demand for the token exploded, which caused Robinhood to crash several times this week, as enthusiastic investors inundated the platform.

This Blitz Crash only happens days after Bitcoin prices are close to $65,000 record high. The exact cause remains unclear, but until now some theories have been presented by analysts. On Friday already, after the Central Bank prohibited the use of digital assets for procurement, Bitcoin had weakened its value somewhat, citing “irreparable” damage and risk of transactions, Reuters said.

While China’s Xinjian region is the home of a vast section of bitcoin mining worldwide, it is also reported that the weekend has been obscured by blackouts issued by government to tackle flood damage and safety issues, causing a decrease of almost 50 percent in bitcoin’s hash rate, according to Forbes. At approximately the same time, unfounded rumors spread on Twitter that the US Treasury is planning a penalty for money laundering scheme using digital assets.

Of course, after a furious week of trade, this could also be the crypto-monetary market which pushed all the coins over $2.25 trillion, reports Bloomberg. It stirred up increased demand for all things cryptography with Coinbase, a cryptocurrency exchange platform, published on Wednesday.