- Bitcoin has fallen by almost half since Coinbase debuted on the Nasdaq last month.
- Other cryptocurrencies are also in the red as the crypto industry witnesses a major market crash.
Bitcoin has fallen by over 50% since April 14, the day crypto exchange Coinbase went public via direct listing on the Nasdaq.
Dubbed “Coinbase Day” by the crypto sphere, Coinbase’s debut on the Nasdaq on April 14 was considered a watershed moment for the industry.
“It speaks to more mainstream adoption on the horizon,” Dan Ives, managing director at Wedbush Securities, told Decrypt at the time.
But, as they have done many times before, the winds in the crypto industry can change quickly.
Bitcoin in freefall
According to CoinGecko, Bitcoin is currently priced at $35,482. This is a far cry from its current all-time high of nearly $64,500 on Coinbase Day. In fact, it is a drop of a whopping 81%.
Bitcoin opened the day at $43,000, meaning that it has dropped by 16% today, reaching lows of $30,415.
It’s part of a wider crash, too. During the last seven days, Bitcoin's price has dropped by 36%.
Much of this decline has been attributed to Tesla CEO Elon Musk’s reversal on Bitcoin. After overseeing the EV manufacturer’s $1.5 billion investment into Bitcoin some three months ago, Musk tweeted last week that Tesla is no longer accepting Bitcoin as payment.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Musk wrote.
Subsequently, Bitcoin took another blow when Chinese payment associations issued a statement reiterating the central bank's 2017 ban on financial institutions engaging in crypto transactions. The statement also warned investors against "speculative" crypto trading.
However, Bitcoiners aren’t concerned about the market crash.
“These cycles are common and the catalyst is simply different each time,” Jason Deane, Bitcoin analyst at Quantum Economics, told Decrypt. He added, “Calmer heads will always prevail. Bitcoin’s fundamentals remain as solid as ever and the long-term trends remain intact.”
Ethereum slips alongside Bitcoin
Bitcoin is not the only cryptocurrency that has nosedived recently.
Ethereum, the second-biggest cryptocurrency by market cap, has dropped by over 24% in just the last 24 hours.
However, Ethereum watchers remain optimistic as its ETH 2.0 upgrade looms on the horizon, bringing a switch to the more energy-efficient proof of stake consensus mechanism.
“With Ethereum’s scalability nearly solved via Layer 2 and sharing, what can be built on-chain widens,” Charles Storry, head of growth at Phuture, told Decrypt, adding, “This is what excites the core community. The new applications that we are going to see come to market and the wider impact that’s going to have on others.”