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Ethereum Falls 13%, Other Coins Follow in Crypto Rollercoaster

Bitcoin cryptocurrency
(Image credit: Shutterstock)

Cryptocurrency holders are currently bracing for precipitous drops on the value of their portfolios, as the cumulative market value of cryptocurrencies has just bled the equivalent of $250 billion in less than 24 hours. The market downturn is being attributed to the Evergrande turmoil, which sparked concerns for a potentially catastrophic debt default in China, as well as upcoming investigations from the United States.

Evergrande, a Chinese real-estate giant, holds more than $305 billion in liabilities. This most recent crypto downturn is being associated with a massive market sell-off, with holders attempting to raise their liquidity (i.e. monetary value that hasn't been locked in) in response to a sharp decline in Evergrande's share price, which just plunged to its lowest level in 11 years. 

Adding to the market's instabilities are this weekend's reports that U.S. regulators are gearing up to probe crypto trading giant Binance to root out money laundering and other illicit activity. 

Bitcoin itself dropped as much as 11% in less than 24 hours, while Ethereum fared even worse, plummeting as much as 13% in the same period. The altcoin market was unsurprisingly hit the hardest, with Algorand, which came out of a month-long 115% rally, losing as much as 22%. Other altcoins generally followed the market, which has slightly recovered since the initial drop, with Bitcoin currently being 8% down from yesterday's high.

A selling market for some typically translates to a buyers' market for others, however. El Salvador, which recently announced the acceptance of Bitcoin as legal tender, took the market downturn as an opportunity to add to its Bitcoin holdings, with the country announcing the acquisition of 150 bitcoins, valued at $6.5 million. 

Cryptocurrency volatility is hardly a secret - and is actually one of the reasons for its usage as a speculation vehicle. While this market downturn in not nearly as dramatic as a Banksy-inspired, Pi-based, stock market-linked money shredder, cryptocurrency "hodlers" may certainly be feeling that way at this point in time.

  • velocityg4
    In other news. Scientists announce that bears do crap in the woods.

    Sounds like a normal change in Crypto prices. They're always swinging wildly.
    Reply
  • Flemkopf
    velocityg4 said:
    In other news. Scientists announce that bears do crap in the woods.

    Sounds like a normal change in Crypto prices. They're always swinging wildly.
    What I find interesting is that Crypto's dropped in response to market instability. People keep likening it to gold, something that you jump onto when things go sideways but it's not acting that way right now. 'Course, if a lot of institutions/folks are getting spooked by the junk bond stuff right now and wanting out of similarly volitile crypto, that would make a lot of sense.
    Reply
  • InvalidError
    Flemkopf said:
    What I find interesting is that Crypto's dropped in response to market instability.
    This is similar to people doing bank runs when the economy is in such a bad shape that banks might implode. If every crypto exchange you have access to has run out of cash due to mass sell-offs, your crypto becomes effectively worthless until someone pours more money in.
    Reply
  • BTM18
    Let it all collapse! Hahaha, Miners deserve the impending collapse.. Such fun.
    If not not next week. Maybe the week after that hmmm ?
    .COM... 2.0

    Check back later to see if this is deleted by toms. I know they LOVE mining.
    Reply
  • BTM18
    InvalidError said:
    This is similar to people doing bank runs when the economy is in such a bad shape that banks might implode. If every crypto exchange you have access to has run out of cash due to mass sell-offs, your crypto becomes effectively worthless until someone pours more money in.
    No, Crypto is nothing like legitimate banking. Its trash. Good luck.lol
    Reply
  • BTM18
    Admin said:
    The cryptocurrency market faced a severe downturn today, with prices falling up to 13% for Ethereum and 11% for Bitcoin. The altcoin market is currently straining even harder in this $250 billion-worth downturn.

    Ethereum Falls 13%, Other Coins Follow in Crypto Rollercoaster : Read more
    That is great news!
    Reply
  • InvalidError
    BTM18 said:
    No, Crypto is nothing like legitimate banking. Its trash. Good luck.lol
    "Legitimate banking " is kind of trash too with many banks being over-leveraged and banking on getting bailed out by the government if they screw up like US banks got bailed out in the 2008 collapse. Greek banks collapsed too when Greece left the EU. Unless your country has strong savings protection laws, your bank account is one major economic event from potentially becoming null and void just like crypto.
    Reply