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Crypto Crash Intensifies | This Week in Crypto – May 24, 2021

Crypto markets crash wiping out billions in market cap and China puts limits on BTC mining but Cathie Wood still expects Bitcoin to reach $500k? These stories and more, this week in crypto.

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In a single day, Bitcoin erased 30% in value. A cascade of long liquidations pushed the BTC price from $38000 to $30000 in minutes. When the dust settled, $3.2Bn was liquidated in total. Altcoin prices were quick to follow, resulting in losses of nearly $500 billion market-wide.

This week’s crash also caused several problems for cryptocurrency exchanges. Users of Coinbase, Binance and other trading platforms reported having difficulties logging into the sites and trading specific currencies. These issues have since been resolved.

An “insider” on anonymous board 4Chan claims the crypto crash was caused by a coordinated attack by an unnamed firm connected to the Chinese government. Such claims, without a verifiable source, should be taken with a healthy dose of skepticism, but the post was indeed made 12 hours before markets collapsed.

China has announced that bitcoin mining and trading will face certain limits in the near future. This is not the first time China has banned or placed limits on Bitcoin: the country has had an up-and-down relationship with crypto in recent years.

The U.S. Treasury department is looking to increase the IRS’s budget by nearly $700 billion to ensure tax evaders receive their due. One of the factors included in the plan is stricter crypto regulation, including the requirement that all crypto transactions with a value of $10K or more be reported to financial authorities.

Societe Generale, has issued a recent note claiming that and that bitcoin cannot be trusted in the same way given that it remains extremely volatile, and that its “erratic price movements” present serious risk to traders.

A new report suggests that millennials are losing their love and respect for Bitcoin and turning to popular altcoins such as Doge. Many now even refer to bitcoin as “boomer coin” on social media, either referencing its age or the idea that it is designed largely for older or more experienced investors.

One of the U.S.’s largest financial services companies, Wells Fargo, is planning to offer an actively managed cryptocurrency strategy for its clients. However, due to the inherent risks associated with digital assets, Wells Fargo will offer crypto investing only to its wealthiest clients.

Despite all the negative news of this week, Cathie Wood of Ark Invest still sees bitcoin reaching a high of approximately $500,000 per unit in the coming years. Now that she feels the currency has likely bottomed out, she is confident that more institutions will feel comfortable buying in, which could make the price spike all over again.

That’s what’s happened this week in crypto. See you next week.

Want a chance to meet Nate in person? And hear from some of the biggest names in the crypto space? Then make your plans to attend Bitcoin 2021 in Miami. Use the code 99BITCOINS to get 10% off your ticket. See you there!

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