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The series of events has pushed the global crypto market cap from the highest point of about $2.4 trillion in the past week to a low of $1.73 trillion.
The global cryptocurrency industry witnessed its most pervasive bear pressure in months as the market crumbled following the news of the China crypto ban. The market is currently experiencing a frail growth pace based on Elon Musk’s criticism of Bitcoin (BTC) per its high energy demand for mining and transactions. While the move by Tesla Inc (NASDAQ: TSLA) to reverse its Bitcoin payments and Elon’s assertions placed the first blow to the industry in the past week, the ban from the Asian giant compounded it.
The series of events has pushed the global crypto market cap from the highest point of about $2.4 trillion in the past week to a low of $1.73 trillion. Per the individual performances, Bitcoin’s price slipped to its lowest lows since late January and plunged from a 24-hour high of $40,738.53 to a low of $30,681.50, following the news of the Chinese ban. Ethereum also slipped remarkably, and traded at a low of $1,952.46, down from its one day high of $2,982.25. Per market capitalization, Bitcoin is currently valued at $731.9 billion while Ethereum’s has retraced to $310 billion.
While the drop is all-encompassing, it revealed the fundamental challenge the crypto ecosystem is maturing into. The centralization of influence. Many market participants believe Elon Musk’s criticism and its aftermath on the market is proof that the market prices can be easily manipulated by a few entities. Based on this, there have been calls for Tesla to sell off its BTC holdings, while some users disappointed in Elon Musk’s tweets have launched a token dubbed the FuckElonTweet token to send a message to the billionaire investor to stop fueling negative market reactions with his tweets.
Global Crypto Market Yearns for Recovery
The market has plunged from its peak experienced a few weeks ago when several altcoins attained a series of consistent all-time highs (ATHs). Having fallen from its impressive year-to-date peak, the market is yearning for recovery, and several market whales are doing all to usher in this recovery.
Business intelligence firm, MicroStrategy Incorporated (NASDAQ: MSTR) doubled up on its Bitcoin accumulation by purchasing the digital currency in two tranches within the span of 7 days, bringing its total BTC Holdings to 92,079 units. Trailing MicroStrategy and its Chief Executive Officer, Michael Saylor, Tron Foundation’s Justin Sun unveiled he has acquired 4145 units of BTC with a total sum of $152,818,183 and at an average price of $36,868.
I have bought 4145 #Bitcoin with $152,818,183 at average price $36,868.
— Justin Sun 🅣🌞 (@justinsuntron) May 19, 2021
The market observers are hopeful that these accumulations can reignite the interests amongst both retail and institutional investors, all in a bid to drive the price of the assets down to its pre-Xinjiang flooding levels.