After the comments made by Elon Musk on Twitter that Tesla will stop accepting Bitcoin, the entire market was taken by surprise. He has always been an avid supporter of cryptocurrency and has always encouraged innovation in the space. Tesla also became the first major brand to have started accepting Bitcoin as a payment option. So, the tweet for Tesla actually crashed the markets and pushed ETH and BTC below critical levels of $50k and $4k. At present, Ethereum and Bitcoin are currently trading at $3,820 and $48,150, respectively.
Fall of ETH and BTC
After the announcement on Twitter, the price of BTC and ETH have fallen drastically. While ETH was trading at an all-time high of around $4,350, BTC was trying to break past the $60k price point. And both of them fell more than 10% that day. BTC made a low of $47k from $57k and closed at $50.5k. At the same time, Ethereum made a low of $3,700 from $4,383 and then closed at $3,950. The fall of these tokens also brought down the prices of other coins to lows we haven’t seen since 24th April 2021.
Rise of ADA and DeFi tokens
While the entire market was in denial about the whole Tesla situation, there were some coins that did exceptionally well during the dip. The most prominent name among these is ADA which has been pushing to new highs every day. It was trading between 80-110 price for quite some time, but now the token has finally pushed past that and rose to an astonishingly high rate of Rs 192 and is now trading at about Rs 180. At the same time, other DeFi tokens like Uniswap and Sushi were doing quite well during the bear market.
We have also seen prices of many other tokens like DOT, MATIC, ATOM rise substantially in the last few days. After the dip on 24th April due to the US tax news, DOT was finding it hard to recover and move past the Rs 3000 price point. But yesterday it made an all-time high of around Rs 4000. MATIC has also made an all-time high of Rs 149 and is currently trading at Rs 130.
What’s next?
The fall of BTC and ETH but not other tokens signify that their dominance over the market is falling. Due to this, we can expect other coins to do well even if BTC or ETH crashes during a bear market. This brings us to phase 3 of crypto markets that is alt season which means that this is the time when alts will begin to outperform the main cryptocurrencies like Bitcoin and Ethereum. So, it is definitely a good idea to hold on to some good altcoins with the potential of going 10x or even 100x in the near future.
What are your thoughts on the crash of BTC and ETH due to the market manipulation done by Elon Musk? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
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