Bitcoin went through another unsuccessful attempt to overcome $40,000, and the subsequent rejection drove the cryptocurrency south hard. As it typically happens, the altcoins were harmed even worse, with over $100 billion gone from the crypto market cap.
Did Musk Pushed BTC South Again?
Since the start of the workweek, bitcoin was performing rather well. It recovered from the Sunday drop relatively quickly. It kept climbing higher in the past few days resulting in a new six-day high of over $39,000 yesterday.
However, as it happened in the past several occasions when BTC neared the coveted $40,000 line, the bears stepped up. They rejected the asset’s attempt to continue upwards, but bitcoin managed to stay around $39,000 for a few more hours.
And this is where Elon Musk came to play again. Showing once more his influence over the market, Tesla’s CEO referred to a Linkin Park song and posted a brokenhearted emoji next to “Bitcoin.”
His words were regarded as a negative engagement, as usual lately, and the primary cryptocurrency started freefalling. In a matter of hours, bitcoin lost more than $2,000 of value and dipped below $36,500.
On the way down, the asset’s market capitalization dumped beneath $700 billion once more.
BTCUSD. Source: TradingView
Alts Bleed Out Too
The alternative coins were also riding high this week but, as it happened with their leader, are suffering badly now. Ethereum neared $3,000 yesterday but has plummeted by more than 7% to around $2,600 as of writing these lines.
Binance Coin was among the best performers as it had spiked to well above $400 yesterday. However, BNB is also down on a 24-hour scale and currently sits around $380.
Cardano (-6.5%), Ripple (-9%), Polkadot (-11%), Uniswap (10%), Bitcoin Cash (-9%), Chainlink (-11%), and Litecoin (-10.5%) are also well in the red.
Interestingly, Elon Musk’s favorite meme coin has lost the most substantial chunk of value in the past 24 hours. DOGE is down by more than 15% to around $0.36.
Further losses are evident from Zilliqa (18%), Curve DAO Token (-15%), DigiByte (-15%), THORChain (15%), Synthetix (-14%), ICON (-13%), Holo (-13%), Kusama (-13%), Fantom (-13%), SHIB (-13%), and many more.
Ultimately, the cumulative market capitalization of all cryptocurrency assets has dumped by more than $100 billion in a day to below $1.650 trillion.