Bitcoin Trades $39.6K as Elon Musk Messes with Investors’ Heads
Trading at $39.6K, Bitcoin price tumbled significantly in the past days as Elon Musk’s tweet continue to mess with crypto-investors heads, leading to major fall market capitalisation.
After the largest cryptocurrency asset plunged, the global crypto market cap sloped down to $1.86 trillion, a 13.25% decrease over the last day. Market data now shows Bitcoin’s dominance is currently 40.05%, an increase of 0.14% over the day.
Meanwhile, the funding rates fell below 0% on two separate occasions over the past week – during the May 12 sell-off, and again on Monday as the market reacted to Tesla CEO Elon Musk’s latest comments on the cryptocurrency.
On Wednesday, the total crypto market volume over the last 24 hours is $220.56 billion, which makes a 6.83% increase as cryptocurrency market capitalisation struggles to make a comeback.
According to market data, the total volume in DeFi is currently $23.74B, representing 10.76% of the total crypto market 24-hour volume.
CoinMarketCap stated on the website that the volume of all stable coins is now $182.50B, which is 82.74% of the total crypto market 24-hour volume.
Bitcoin’s price settles at $39.6k Tuesday as all major crypts assets dropped more than double digits in the last 24 hours, according to data from CoinMarketCap.
The Crypto Fear and Greed Index, a metric that measures the current sentiment in the bitcoin market, has fallen to “extreme fear” levels not seen since April 2020, a report Tuesday showed.
The drop in market sentiment follows the past week’s plunge in the bitcoin (BTC) price to less than $40,000, down from last month’s record near $65,000.
The past week has been filled with fear, uncertainty and doubt, and the bitcoin price has crashed down,” the Arcane analysts wrote.
“In the past, an extremely fearful market like this has historically presented solid buying opportunities during bull cycles.”
Funding rates in the market for bitcoin derivatives turned negative. The funding rates fell below 0% on two separate occasions over the past week – during the May 12 sell-off, and again on Monday as the market reacted to Tesla CEO Elon Musk’s latest comments on the cryptocurrency.
“As the market headed downwards yesterday, $1 billion worth of longs got liquidated as the market turned sour.” By Tuesday, according to the report, the funding rate had returned to neutral territory, according to the report.
Short-term price volatility has climbed to the highest level since February. The 30-day volatility is now at 4.5%, indicating that the bitcoin price has been moving 4.5% every day over the past month, on average.
MicroStrategy purchased an additional 229 BTC for $10 million in cash, pushing its total Bitcoin reserve to 92,079 BTC.
This recent purchase was made at an average price of $43,633 per BTC. In total, MicroStrategy has purchased $2.251 billion worth of Bitcoin at an average purchase price of $24,450 per BTC.
MicroStrategy is one of the biggest publicly listed companies with Bitcoin investments, alongside companies like WeWork, Square that have put Bitcoin on their balance sheets.
Bitcoin Trades $39.6K as Elon Musk Messes with Investors’ Heads
