- Bitcoin and ethereum both fell double digits on Wednesday in a dark day for the crypto world.
- Crypto-linked stocks like Coinbase, Riot Blockchain, MicroStrategy, and more all fell in response.
- The start of the bear market for crypto came after Elon Musk said Tesla would no longer accept bitcoin on May 12.
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Grayscale Bitcoin Trust sank more than 15% on Wednesday as well, and even Tesla saw its stock drop more than 3.5% on the dark day for cryptocurrency enthusiasts.
Cryptocurrencies as a whole saw roughly 34% wiped off their total market cap on the day, according to data from CoinMarketCap.com, as altcoins fell in tandem with crypto leaders bitcoin and ethereum.
All of the top ten cryptocurrencies by market cap, except the stablecoin Tether, fell double digits on Wednesday.
The cryptocurrency bear market began on May 12, when Elon Musk tweeted that Tesla would no longer accept bitcoin as a payment method due to the environmental impact of its computational mining tactic for minting new coins.
Then on Tuesday, the Chinese government reinforced its previous ban on financial institutions and payments companies operating in the cryptocurrency business.
The National Internet Finance Association of China, the China Banking Association, and the Payment and Clearing Association of China said in a statement that cryptocurrencies “are not supported by real value” and argued speculative trading of cryptocurrencies is “seriously infringing on the safety of people’s property and disrupting the normal economic and financial order.”
The historic single-day fall for cryptocurrencies comes just a day after Galaxy Digital’s Mike Novogratz shrugged off the recent crypto-slump.
“It’s easy to get buried in the volatility of the day,” Novogratz said, according to a transcript on Sentieo, a financial-research site. “Elon Musk’s Twitter comments, bitcoin going down 4,000 points, and everyone starts running around like chickens with their head cut off.”
Novogratz said he expects the total value of crypto assets to triple, or even quadruple, to between $6 trillion and $8 trillion in the coming years.
Read more: ‘Wolf of All Streets’ crypto trader Scott Melker breaks down his strategy for making money using ‘HODLing’ and 100X trade opportunities – and shares 5 under-the-radar tokens he thinks could explode
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