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Crypto crash update: panic-selling across the board, coinbase record low

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Cryptocurrencies suffer broad losses

Bitcoin

Oh how the tables have turned on Elon Musk and his Tesla’s Bitcoin investment.  Bitcoin has now fallen over 50% from record highs and erased away all the price gains that happened after the February 8th Tesla announcement that they would put bitcoin on its balance sheet and accept it as a form of payment.  It got ugly fast for bitcoin after Musk focused too much on Dogecoin and suspended vehicle purchases using bitcoin on environmental concerns.

Today’s broad weakness across cryptocurrencies came from the next step in Beijing’s regulatory crackdown.  China’s restrictions on cryptocurrencies are expanding and that has many investors nervous that panic-selling will continue.

Bitcoin’s crash approached the USD30,000 level and that has a lot of the new institutional money see all their profit go up in smoke.  This looks like your typical flash crash, but there seems to be some hesitancy in getting back in.

Ethereum

Ethereum plunged below the USD2,000 level and appears to be stabilizing.  A panic-selling event will lead many investors to be selective and buy the crypto that they think will be most successful and more importantly survive the regulatory hammer (China back in focus here) that seems to be coming.  Ethereum’s blockchain is winning the use case argument and that should see it outperform its peers when the dust settles.

Coinbase

Coinbase will go down as one of the worst direct listings ever.  Coinbase is getting crushed as the crypto markets collapse.  The global crypto market is down over 25% today alone and this crash will not bode well for attracting new customers.  Coinbase wants new crypto traders, but many will be afraid that this bitcoin crash could end up just like the one in 2017.

Coinbase’s trading debut coincides with the top for Bitcoin and many traders can’t make a convincing argument that it will be able to recover all those losses since then.

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Ed Moya

Ed Moya

Contributing Author at OANDA
With more than 20 years’ trading experience, Ed Moya was a Senior Market Analyst with OANDA for the Americas from November 2018 to November 2023. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
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