The Crypto Apocalypse
The cryptocurrency market crash worsened on Sunday pushing losses to more than $1.3 trillion since a market peak on May 12.
- The cryptocurrency market crash worsened on Sunday pushing losses to more than $1.3 trillion since a market peak on May 12.
- ARK Investment CEO, Cathie Wood believes Bitcoin will go to $500,000 and she is not worried about the expected volatility that comes with the cryptocurrency market.
- Cardano ADA is the first one to recover with a solid 13% until now, followed by Ethereum that has also recovered 10% and then Bitcoin almost 6%.
- BNB’s current price is $291 and has tumbled more than 60% from the time of the crash. Investors are also seeing this as an opportunity to buy more BNB since its NFT marketplace release is going to take place sometime in June and that gives hopes for an increase in its price value.
After the panic of the Chinese regulators banning institutions and payment providers from providing crypto-related activities, the cryptocurrency exchange Huobi told CoinDesk that it has halted some of its mining-hosting activities in China and other countries.
“Due to recent dynamic changes in the market, in order to protect the interests of investors, a portion of services such as futures contracts, ETP, or other leveraged investment products are temporarily not available to new users from a few specified countries and regions,” according to Huobi’s statement shared with CoinDesk.
“Huobi always strives to abide by the evolving policies and regulations of each jurisdiction to adhere to risk and preserve the well-being of our users and their assets,” the statement said.
ARK Investment CEO, Cathie Wood believes Bitcoin will go to $500,000
Cathie Wood is well known after believing that Elon Musk’s Tesla (TSLA) stock will touch $2,000. The stock has touched the highest high of $900.40 and has now dropped all the way to $580. However, this time and despite the Bitcoin crash she still believes that bitcoin prices will rise to $500,000 which is approximately 15 times more than current prices. On another note, she is insisting that volatility is something investors should expect in the crypto market. “We go through soul searching times like this and scrape the models, and yes our conviction is just as high,” she told Bloomberg TV Wednesday, before warning: “You never know how low is low when a market gets very emotional.”
Monday’s upwards correction
Today the cryptocurrency market shows to be recovering from the weekend’s hit. Cardano also known as ADA is number one, and has corrected a solid 13% until now, followed by Ethereum that has also recovered 10% and then Bitcoin almost 6%.
The recovery shows that retail investors are now seeing this as an opportunity to jump on smaller cryptos such as ADA, MATIC, etc.
ADA has managed to leapfrog BNB following a difficult week for altcoins. The recent bitcoin price drop has seen the entire market slum. Bitcoin plunged to a sixteen week low as it touched $30,000 this week. Dragging altcoins down with it.
BNB’s current price is $291 and has tumbled more than 60% from the time of the crash. Investors are also seeing this as an opportunity to buy more BNB since its NFT marketplace release is going to take place sometime in June and that gives hopes for an increase in its price value.
Riot Blockchain (NASDAQ: RIOT) reported mining revenue of $23.2 million during the first quarter of 2021. This is 880% up compared to last year’s first quarter. Furthermore, its margins from bitcoin mining operations were 67.5% compares to a 40% last year. Most importantly its net income touched $7.5 million versus a net loss of $4.3 million last year. With such growth, other companies will be encouraged to add crypto mining operations into their businesses. This will further spread the geographic distribution of bitcoin miners around the world and will help to disperse the “Bitcoin is controlled by China” critiques.
Wells Fargo (NYSE: WFC) is developing an actively managed crypto investment strategy for qualified investors in its wealth and investment management division. Another important stepping stone from a legacy institution that acknowledges crypto investments have a role in portfolios. This surely comes after an increase in demand because Wells Fargo would not be risking its reputation if it wasn’t for demand.
This week’s sharp market correction tested several large platforms such us, Gemini, Coinbase (NASDAQ: COIN), and Kraken. All of them experienced some technical issues, connectivity issues, and withdrawal suspension for a certain time. This shows that even the largest exchanges can still not catch up with the high volume and that the industry is still young.
Disclaimer – I/we have no position in any stock mentioned. I wrote this article myself, and it expresses my personal opinions. I am not receiving any compensation for it, other than FDGT Academy. I do not have or had in the past any business relationship with any company that is mentioned in the above article.
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