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The reason the cryptocurrency (virtual currency) collapsed last weekend was because investors enjoyed the Coinbase listing party too much, Bloomberg News reported on the 18th (local time).
Bloomberg News analyzed that the weekend crash occurred due to a hangover phenomenon because investors enjoyed too much partying, such as bitcoin breaking an all-time high with the listing of Coinbase, the largest cryptocurrency exchange in the United States.
Bitcoin broke an all-time high on the 14th, surpassing $64,000 just before Coinbase’s listing in New York. However, it fell sharply afterwards and fell to the 55,000 dollar level as of 6 am on the 19th (Korean time). Bitcoin has plunged 15% from its previous high.
Not only Bitcoin, but all cryptocurrencies are on the rise. Only Dogecoin succeeded in rebounding when a low-priced buying trend inflows.
The peak of the cryptocurrency party was the listing of Coinbase on the 14th. On the day of listing, the market cap of cryptocurrency exceeded 2 trillion dollars. At that time, the market cap reached a record high of $2.225 trillion.
Coinbase also has a market cap of 68 billion dollars, making it the number one exchange in the market cap.
Investors are excited that as Coinbase succeeds in listing, cryptocurrency will be incorporated into mainstream investment destinations in earnest.
However, this excitement was excessive. Coinbase, which has just been listed, has overtaken the market cap of the traditional New York Stock Exchange or Nasdaq.
Michael Novogratz, founder of the cryptocurrency company Galaxy Digital, said, “In retrospect, the happiness of the investor was excessive.
However, there are still signs of continued euphoria. This is because Dogecoin, which has no fundamentals, is soaring despite the plunge in cryptocurrency.
While all cryptocurrencies are plummeting, Dogecoin is rebounding sharply. As of 6:10 am on the 19th (based on Korean time), Dogecoin is recording 33.92 cents, up 9.47% from 24 hours ago in the US coin market cap. This is interpreted as the inflow of low-priced buying.
As a result, the developers said that they made it’for fun’, and the market cap of Dogecoin, which has no use, is recording $43.8 billion (49 trillion won). Also, on the 16th, as orders for Dogecoin surged, Robin Hood, a famous online stock trading app in the United States, went down.
Bloomberg feared that looking at Dogecoin, it seems that investors’ euphoria is not over.