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Cryptos Bounce Back As Backers Try To Prove A Point   

Published 05/20/2021, 09:33 AM
Updated 05/20/2021, 09:35 AM

By Dhirendra Tripathi

Investing.com – The world of cryptocurrencies and blockchain is staging a recovery after Wednesday left it badly bruised.

Bitcoin (BitfinexUSD), the crypto with the largest market cap, was back above $42,000, bouncing back from the $30,000 depth it sank to a day earlier.

Ethereum ETH/USD and Dogecoin DOGE/USD, both of which lost more than a fourth of their value in the carnage, were also attempting to erase their losses, with the latter managing to recoup all of it.

Coinbase (NASDAQ:COIN) was up 3%, still some way off from a full recovery after a near 6% erosion Wednesday. MicroStrategy (NASDAQ:MSTR), a Bitcoin investor, was up 5%.

Shares of companies linked to blockchain technology, the basis of cryptos, were also up. Riot Blockchain (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA) were each up 7% to 8%.

A 30% to 40% erosion in crypto values is not unusual but coming as it did amid a swirling debate around their stability, use as a store of value and use by criminals left many questioning their continued viability.

There had been much unease in the last few days over Tesla (NASDAQ:TSLA) CEO Elon Musk’s sudden shifting of allegiance to Dogecoin from Bitcoin, the latter also being the most popular crypto.

With China announcing a clampdown on crypto transactions Wednesday, all hell broke loose and crypto prices plunged, causing much amusement among their skeptics who question their value as a hedge against inflation and their viability against sovereign currencies.

That a CEO’s tweets can cause wild swings in their value has also not helped the cause of the crypto backers.

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But Thursday’s comeback will give a huge sigh of relief to its supporters as they seek greater acceptance for the cryptos.

 

 

 

 

 

Latest comments

Criminals use cash much more than they use Bitcoin.
'That a CEO’s tweets can cause wild swings in their value has also not helped the cause of the crypto backers.' Well these are the whales and the governments that are manipulating the markets for their own purposes. Everything new in the financial world has been subject to this. Stay the course. The values will swing wildly in anything that is new. The governments will try and manipulate as well because they don't like the fact they can't control it. Thus the criminal narrative which they will use to abuse your rights to the pursuit. This is how the revolution in freedom will be fought against tyranny. But you have to be willing to except the ride you are on.
you're joking right? the FED couldn't have called inflation "transitory" if it wasn't for cryptos. they are pulling dollars away from real commodity trades. Also, the US is glad that most mining is done in China because it's not testing the limits of our internet and power infrastructure. China is the only country in the world that is against crypto because the miners are selling for worthless USDs that China doesn't want. Digital Golden Yuan is about the only hope for real currency in the crypto space. everything else is just a sideshow. enjoy having useless code on your devices that's more than likely spying on you the same way big tech does.
How is this any different than Jerome Powell or Janet Yellen’s words moving markets? This is absurd, anyone with lots of fame or notariety can swing markets just by Tweeting or speaking.
Ummm, anyone who owns a cell phone is being spied on.
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