Bitcoin price moved from $28.6k to around $30k on Tuesday but stabilized around $29.6k during the early Asian trading hours on Wednesday.
The cryptocurrency market had mixed reactions following experts’ opinion of a possible black swan event in the DeFi lending industry triggered by the Curve finance and AAVE fiasco. Notably, the 300 million CRV that was used by Curve founder Michael Egorov as collateral for a $60 million USDT loan risks getting liquidated if the CRV price drops below 37 cents. According to the latest crypto price oracles, CRV value dropped over 20 percent since August opening to trade around $0.578 on Wednesday.
The cryptocurrency market was, however, thrilled by the third Litecoin halving event that is expected to take place on Wednesday. Essentially, Litecoin halving reduces LTC inflation by half thus giving the existing coins more value. Despite the crypto market uncertainty, Bitcoin’s price suddenly gained nearly 3 percent to briefly hit $30k. However, the Bitcoin price stabilized around $29.6k during the early Asian market on Wednesday.
“We had a lot of buzz recently around the Blackrock ETF but that can only drive bitcoin for so long and for so far. We got plenty of optimism with it but that initial optimism is fading slightly,” Josh Gilbert, an analyst at investment firm eToro, noted. “When bitcoin heads south so do most altcoins … and they’re selling off a little bit further given what we’re seeing with Curve,” added he.
Crypto Stock Market
Cryptocurrency and blockchain-related stocks fell to weekly lows as Bitcoin teased below $29k on Tuesday. For instance, Coinbase Global Inc (NASDAQ: COIN) shares closed Tuesday trading at $94.15, down 4.52 percent from the day’s opening value. The drop in COIN shares continued during the after-hours, despite Bitcoin briefly hitting $30k. Nonetheless, COIN shares have gained about 166 percent YTD to a market capitalization of approximately $23.14 billion.
In the crypto mining stocks, Riot Platforms Inc (NASDAQ: RIOT) shares closed Tuesday trading at $18.23, down 1.57 percent from the day’s opening price. However, RIOT shares gained approximately 1.26 percent during the after-hours as Bitcoin price bumped towards $30k.
Worth noting that RIOT shares have gained approximately 437 percent YTD to a $3.24 billion market capitalization.
Another Bitcoin mining public company, Marathon Digital Holdings Inc. (NASDAQ: MARA) saw its shares drop 3.11 percent on Tuesday to close the day trading at $16.83. Nonetheless, MARA shares have gained about 392 percent YTD to a market capitalization of about $2.95 billion.
Notably, MicroStrategy Inc (NASDAQ: MSTR) has continued to sell its shares and purchase more Bitcoins. As a result, the company is currently the largest public holder of Bitcoins. According to the latest stock market data, MSTR shares did not experience significant volatility on Tuesday, although they gained approximately 207 percent YTD to trade around $436 on Wednesday.