Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Elon Musk’s tweets send ripple across the crypto market, with the overall crypto market cap taking a dip under $2 trillion before recovering once again.
In a major market-wide correction earlier today, Bitcoin price dropped corrected more than 10% making an intraday low under $42,500. This BTC price correction comes as the world’s largest cryptocurrency failed to move past the $50,000 resistance.
Out of the total $250 billion eroded from the crypto market today, BTC alone contributed over 50%. Today’s Bitcoin price correction comes amid Elon Musk tossing up fresh speculations. Earlier today, responding to a tweet, Musk suggested that Tesla Inc (NASDAQ: TSLA) might consider selling its Bitcoin holdings.
— Elon Musk (@elonmusk) May 16, 2021
Bitcoin entered a sharp correction in no time while spreading the ripple effect across the entire crypto market. Although Musk later clarified that Tesla hasn’t sold any of its Bitcoins, however, the damage was already done.
Bitcoin has recovered partially from its intraday lows. At press time, BTC is trading at a price of $45,353 and a market cap of $850 billion. In one of his tweet responses, Musk called Bitcoin “highly centralized”. He wrote:
Bitcoin is actually highly centralized, with supermajority controlled by handful of big mining (aka hashing) companies. A single coal mine in Xinjiang flooded, almost killing miners, and Bitcoin hash rate dropped 35%. Sound “decentralized” to you?
Bitcoin dominance in the crypto market has actually tanked to its lowest i.e. 40% for the first time in three years. the lowest has been 33% during the Bitcoin market crash of January 2018. On the other hand, institutional and corporate purchases of Bitcoin have continued over the last month. Over the last 30 days, institutions accumulated 215,000 BTC as per Bitcoin Treasuries.
— Bitmaniak (@bit_maniak) May 15, 2021
Market Correction: Ethereum Falls Under $3500 Following Bitcoin
As said the overall altcoins pace also looks under pressure. Earlier today, Ethereum (ETH) price crashed all the way 12$ going under $3,300. Ethereum has been one of the top-performing cryptocurrencies in 2021 hitting an all-time high of $4400 last week.
At press time, Ethereum (ETH) is trading at $3553 with a market cap of $406 billion. Even at the current price, Ethereum (ETH) is trading at 400% return year-to-date. Other altcoins have also registered major losses. Binance Coin (BNB) is trading 9.87% down at $534.
Also, after hitting its all-time high of $2.56 over the last weekend, Cardano (ADA) is down another 9% today and is trading at $2.18 with a market cap of $70.3 billion. Dogecoin (DOGE) is trading at $.50 with a market cap of $65.6 billion. Earlier today, Elon Musk also suggested that Dogecoin (DOGE) can be better than Bitcoin by noting:
“Doge speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down. 100X higher transaction volume with 100X lower fees means total fees earned stay same. Low fees & high volume are needed to become currency of Earth.”
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