Bitcoin Bubble Bursts Overnight, Dragging down Stocks

upnorth

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Overnight, a broad selloff of prominent cryptocurrencies has vaporized billions of dollars in value. Bitcoin, the largest cryptocurrency affected, is off more than 18 percent in the last 24 hours. Currently, it's worth just over half what it was in mid-April. Over the past week, more than $600 billion has been wiped out of a wide range of more than 7,000 cryptocurrencies, including bitcoin, ether, and meme coins like dogecoin, according to CoinGecko.

The causes for the selloff are myriad. The first shot across the bow came last week when Tesla CEO Elon Musk declared that his company would no longer be accepting bitcoin for car purchases. The change happened less than two months after he said that Tesla would accept bitcoin, and the about-face came as Musk said he is concerned about the environmental damages being wrought by the energy-intensive cryptocurrency. (His thinking on the matter may have been influenced by an Ars article about a private equity firm that revived a zombie power plant just to mine bitcoin.)
On Tuesday, China issued a warning that financial institutions in the country shouldn’t process or participate in crypto-transactions or offer related services. “Prices of cryptocurrency have skyrocketed and plummeted recently, and speculative trading has bounced back. This seriously harms the safety of people's property and disturbs normal economic and financial orders,” the regulators said in a statement.
 

The_King

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Just when NVIDIA launched their crypto-mining GPUS. :eek: :ROFLMAO:

If anyone has been following Bitcoin over the years they will know that this always happens.
Banks and Governments do something that causes the market to crash few months/year/s later Bitcoin is
back bigger and stronger than ever.

Its seems to be a never ending cycle at this point. One that makes the Bitcoin whales richer and richer and
the masses with FOMO poorer at the end of it all.
 

Stopspying

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Elon Musk's recent statements about various cryptocurrencies seem to me to have influenced recent currency values. I'm not sure what to make of his actions, besides the obvious keeping himself in the spotlight motives.
 

Paul.R

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When BTC price will reach a certain level of price, Elon wouldn't be able to use Twitter for fun about cryptomarket. As for now just HODL :) don't panic....in my opinion BTC will go to 10k (maybe) after that we will see a sky rocket pump :)
 
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Stopspying

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Elon Musk says and does what Elon Musk says and does just because he can.

He is aware that he has immense influence and he gets off on it.
Yes, that is what I was inferring. I'm not sure what his longer term motives are for bigging up certain cryptocurrencies and then slamming them shortly afterwards. Did he make a killing by offloading his stash of certain cryptocurrencies at the optimum time after he'd boosted their value with his comments, or something similar? That would be wide-scale manipulation of financial markets.
 

mkoundo

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To be honest, btc was starting to slide before musk's comments (they certainly didn't help though and accelerated the pullback) as you can see by the trend reversal in mid-April. Anyway, there seems to be some consolidation going on now.

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