Fear Takes Control As Bitcoin Crashes And The Market Cap Drops By Nearly $1T

gold-colored Bitcoin

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This Week’s Summary

  • The crypto market looks to end the week at a total market capitalization of $1,413 trillion.
  • Bitcoin (BITCOMP) is down by 30% after another public bashing from Elon Musk and China regulators.
  • Ethereum (ETH-X) lost almost 47% of its value over the past seven days.
  • XRP (XRP-X) is down by 50% and is now trading again below $1.
  • Binance Coin (BNB-X) and many other altcoins are down by 50%.
  • The DeFi sector lost almost $30 billion in total value protocols (TVL).

Crypto Trends for the Week of May 17-23, 2021: Performance and Analysis

The cryptocurrency market is ending one of the worst weeks in its history. The bulls were nowhere to be found as a fiery debate on Twitter, fueled by no other than Elon Musk, was enough to cause a massive bloodbath. More so, the Chinese regulators “chose” the perfect time to reiterate an old ban on banks preventing them from working with crypto exchanges.

All in all, it was a week marked by Fear, Uncertainty, and Doubt (FUD). And the results are easy to see in the exponential losses that almost every crypto asset endured. Additionally, the overall market capitalization dropped by $891 billion, and it now stands at $1,413.

Bitcoin has been bleeding massively for a couple of weeks now. However, the biggest blow to its dominance came on May 19, remembered as Black Wednesday for the crypto market.

The primary cryptocurrency started the week trading at around $46,000 and it was showing promising signs of an upturn. Unfortunately, every last drop of optimism vanished into thin air on Wednesday. After a long and fierce debate on Twitter between Elon Musk and the crypto community, the CEO of Tesla bashed BTC for allegedly being highly centralized.

Additional support for dogecoin (DOGE-X) and more venom towards bitcoin took the latter on a downward spiral. During the biggest correction in the most recent bull run, bitcoin dropped as low as $30,000. Meanwhile, the entire market came crashing down as altcoins started losing a great chunk of investors’ support by the hour.

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William K. 3 weeks ago Member's comment

Bitcoin and all of the others are all only "funny money", which we should understand from the start. a currency without anything except an agreement causing it to have claimed value. And folks buying into this fog. So of course it is variable, because the price of shares is based on emotions and the resulting bids. The "auction effect" is another term for it. Greed is the emotion behind the rises, fear is behind the crashes. Why is that so hard to see???