Coinbase, MicroStrategy and Tesla all experienced a slump yesterday, while the total crypto market capitalization decreased by $ 400 billion
The huge slump that hit the crypto market yesterday wiped out $ 400 billion of the total crypto market capitalization in just one hour. Bitcoin fell 30% to a one-day low of $ 30,000, where it had not traded since the end of January. Its poor performance seemed to carry all the other leading cryptocurrencies with it,
although the slump was not limited to the crypto market – many crypto-related stocks were also affected. The crypto exchange Coinbase had proposed earlier this week, a private offer in the amount of $ 1.25 billion. Yesterday, its stock (COIN) plunged to an all-time low of 208 US dollars, a decline of 13% compared to the closing price of the previous day.
Paypal (PYPL) has been supporting payments in cryptocurrency since last year and fell 3.5% in 24 hours yesterday, while Square (SQ) fell 6.4% with a stock of 8.027 BTC.
The digital asset manager Galaxy Digital (GLXY) was also affected by the slump and recorded a third lower at yesterday’s opening. However, Mike Novogratz, managing director of Galaxy Digital did not seem alarmed and told CNBC: „It felt like we surrendered this morning … [aber] … the matter is not off the table, this crypto revolution continues.“
MicroStrategy has the largest Bitcoin inventory of all listed companies with 92,079 BTC. Its stock (MSTR) opened yesterday with a loss of almost 14%. Michael Saylor, Managing Director of MicroStrategy, however, was undaunted and tweeted: „Companies I control have now acquired 111,000 #BTC and not sold a single Satoshi. # Bitcoin Forever.“
After MicroStrategy, Tesla (TSLA) owns the second largest Bitcoin treasure, whose value dropped by 4.4% yesterday at a certain point in time. Elon Musk has been accused of stoking fear, uncertainty and doubt (FUD) in the Bitcoin markets for posting negative tweets about the cryptocurrency last week. In fact, Bitcoin yesterday fell below February’s price when Tesla announced its $ 1.5 billion BTC purchase.
Although Musk previously Fears aroused had that Tesla might be about to sell off its Bitcoin holdings, he seemed yesterday to suggest the opposite:
Tesla has 💎 🙌
— Elon Musk (@elonmusk) May 19, 2021
(“Diamond Hands” is stock market terminology and means holding an asset tenaciously).
However, the” Black Wednesday ” of the crypto market didn’t seem to hit the stock market too hard, as all of the above stocks ended the day with a green day candle anyway.