Hundreds Of Billions Lost As Major Cryptocurrencies—Including Bitcoin, Ethereum, Solana, Cardano—Tumble In Crypto Crash

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Hundreds of billions were wiped out from the cryptocurrency market on Tuesday amid a market-wide crash that saw the prices of major cryptocurrencies – including Bitcoin, Ethereum, Cardano and Solana – plummet from near record levels this week.

key facts

Bitcoin dropped to around $60,500 on Tuesday morning, down 8% from 24 hours earlier, according to CoinGecko.

Most of the coins – including Ethereum, XRP, cardano, solana, and dogecoin – have experienced a similarly sharp drop over the past 24 hours, dropping between 7% and 10%.

Of the four most valuable cryptocurrencies by market capitalization — excluding the largest bitcoin and blockchain, which is a stablecoin pegged to the US dollar — Ether is down 9.6% to around $4,300, Binance’s BNB is down 8.9% to $590, and Solana is down 7.5% to around $4,300. $225, Cardano 9% to $1.90.

XRP, polkadot, dogecoin and shiba inu – the second largest cryptocurrency by market capitalization, excluding another stablecoin, USD Coin – fell by 9.3%, 12.4%, 8.8% and 6%, respectively.

The losses come as part of a broader trajectory in the cryptocurrency market, which is now worth about $2.76 trillion, according to CoinGecko, down 8.6% from the day before.

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The crash comes less than a week after bitcoin hit a new record, climbing above $69,000. This came as part of a broader rally after the market crash earlier this year, in response to an intense regulatory crackdown in China and growing concerns about bitcoin’s environmental impact. The crash wiped out many of the gains made during the pandemic, when the volatile market boomed due to many factors including the influx of retail investors, more options for trading cryptocurrencies and the popularity of meme-shares and tokens led by online forums on sites like Reddit and celebrity endorsements.

What we don’t know

It is not clear why the cryptocurrency market crashed, although there are many factors that could contribute to it. Chinese authorities renewed their efforts to crack down on cryptocurrency mining Tuesday, criticizing the energy consumption and carbon footprint of the process. China’s previous crackdown on mining saw crypto miners flee the country en masse, many of whom landed in the United States, another possible reason might be responses to President Joe Biden’s infrastructure bill, which includes provisions to regulate and potentially tax cryptocurrency .

in-depth reading

Bitcoin hits a record high in more than six months after the fund’s historic debut (Forbes)

Elon Musk shows how crypto could start ruining weekends for stock traders (Bloomberg)

US claims top spot in bitcoin mining as miners flee China crackdown – here are the world’s biggest mining hubs (Forbes)