It was a sad picture in the cryptocurrency market yesterday. First, Tesla CEO Elon Musk pulled the entire market down with fear, uncertainty & doubt (FUD), proving that he never really studied Bitcoin. Subsequently, the market took another blow after news that Binance, the largest cryptocurrency exchange in the world, is under investigation by the US Department of Justice and the tax authorities.
It caused a carnage in the market and the total market capitalization fell nearly 20% from $ 2.6 trillion to $ 2.1 trillion. Meanwhile, the market is slowly recovering and the total capitalization has returned to $ 2.3 trillion.
Bitcoin (BTC) dipped below $ 50,000 after the Tesla news and after the Binance news the price even briefly reached $ 47,000. Over night, bitcoin recovered somewhat, suggesting investors were buying the dip. Bitcoin is currently fighting for $ 50,000 again, but all profits from the past 3 weeks have been lost and the price is almost 25% below the all-time high (ATH) of April 14. Bitcoin’s dominance drops to 40% today.
Ethereum (ETH) was also hit hard. The ether price set a new high of $ 4,355 on May 12. Last night, the price fell back to $ 3,500. That is a decrease of almost 20% in a day and a half. The ether price now seems to be recovering, but is still below USD 3,900.
The Cardano (ADA) price started to rise yesterday afternoon as one of the only crypto on the market. Even after the news from Binance came out, ADA ignored it. The price rose 21% from $ 1.62 last night to a new ATH of $ 1.97. Since then, the price has corrected slightly downwards and is now around $ 1.85.
Dogecoin (DOGE) also initially fell back completely, coming in at $ 0.38. However, the DOGE price started to rise again last night. Dogecoin hit $ 0.56 again this morning, so that’s up 47% overnight! More on Crypto Insiders about this increase later.
Although most crypto prices are gradually recovering, they are still well below their prices from two days ago. The FUD caused a lot of panic in the market yesterday and crypto exchanges saw the largest inflows in a year: