Bitcoin and the broader cryptocurrency market, including ethereum, Ripple’s XRP and cardano, were hit by a sudden flash crash early Sunday morning, causing prices to drop (although Elon Musk’s “fav” crypto-dogecoin remains stable).
Bitcoin price, which showed a downward trend towards $ 60,000 per bitcoin this week, fell by more than 10% to just over $ 50,000. Bitcoin price has since rebounded somewhat to trade around USD 55,000, but remains at some distance from its recent high of nearly USD 65,000.
Ahead of the cryptocurrency flash crash, which wiped $ 300 billion from the combined $ 2 trillion bitcoin, ethereum, XRP, cardano, and wider crypto market, bitcoin bull and Galaxy Digital CEO Mike Novogratz warned of an “outgrowth.”
A cryptocurrency flash crash sent the price of bitcoin, etheruem, Ripple’s XRP, and cardano [+]
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“We could certainly have some volatility over the next week due to the excitement around Coinbase,” said Novogratz. Market overview this week, noting the much-hyped Nasdaq
NDAQ
Bitcoin price soared to nearly $ 65,000 per bitcoin this week, up about 800% from last year, before crashing early Sunday morning. The exact cause of the bitcoin and cryptocurrency price crash was not immediately clear, but some have pointed out that the power cuts in China have brought those who maintain the bitcoin network, known as miners, offline and unconfirmed reports of regulatory action against bitcoin and cryptocurrencies affected.
The highly anticipated Coinbase listing also drove the price of major cryptocurrencies ethereum, Ripple’s XRP, binance coin and cardano significantly higher, with dogecoin, a meme-based cryptocurrency created as a ‘joke’, at a staggering 400%.
“I’ve seen a lot of weird coins like dogecoin and even XRP have massive spikes in retail, which means there’s a lot of madness right now,” Novogratz said. “That never ends well, so we will probably get a washout at some point.”
Dogecoin, a memecoin whose value has skyrocketed as retailers were pushed by Tesla
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Meanwhile, XRP, a cryptocurrency controlled by the Ripple company, is up 500% in the past six months, despite an ongoing lawsuit filed by the U.S. Securities and Exchange Commission (SEC) accusing the company and its senior executives of misleading investors.
Bitcoin price saw a sharp sell-off early Sunday morning and fell back from a rise before [+]
Coinbase
Bitcoin price, which is still nearly double where it started the year, has risen as long-awaited institutional investors finally warmed to bitcoin and bitcoin bolstered its reputation as a stock of value as Musk’s Tesla gives bitcoin its surprising backing.
Ethereum, cardano and similar cryptocurrencies soared in the build-up to the 2021 crypto bull run last year amid a growing interest in decentralized financing (DeFi). Ethereum price has risen to new all-time highs in recent weeks as the bull run accelerated, dropping more than 1,000% in the past 12 months.
This week’s IPO of San Francisco-based Coinbase, one of the world’s largest bitcoin and cryptocurrency exchanges, has been dubbed crypto’s’ Netscape moment ‘, with some bitcoin market viewers predicting that the IPO will usher in the beginning of a’ blockchain boom ‘, comparable to the explosion of internet companies in the late 1990s.