The Crypto market in the early hours of Thursday witnessed record pullbacks as investors increasingly reduced their holdings on higher U.S inflation coupled with bearish actions from Elon Musk and Ethereum co-founder, Vitalik Buterin.
The panic intensified as one of the world’s richest billionaires, Elon Musk, some hours ago revealed Tesla was suspending payments with the flagship crypto, triggering a dump in Bitcoin.
At the time of drafting this report, the global crypto market value stood at $2.28 trillion, postulating a record loss of about 10.07% for the day, meaning that over $200 billion in value was virtually wiped off at the fast-changing cryptocurrency market.
Bitcoin’s price is currently $50,385.04. Bitcoin’s dominance is currently 41.29%, a decrease of 0.90% over the day.
Also, about 342,632 traders got liquidated, with the biggest single liquidation order occurring on Huobi-BTC valued at $38.7 million
The flagship crypto is already down by 10% for the week amid recent reports that point to inflation in the world’s biggest economy surged by 4.2% from April 2020 to April 2021. That’s the highest one-year gain in about 3 years.
Consequently, many altcoins suffered record selling pressures, particularly the dog-themed coin as the majority of these hot meme tokens including Dogelon Mars, Shiba Inu saw their valuation plunging as much as above 35% on the account that Ethereum’s co-founder, Vitalik Buterin removed the liquidity from the Shiba Inu liquidity pool on Uniswap and began selling tokens.
The proceeds from the sale valued to be worth over $1 billion were donated to the India Covid Relief Fund and a range of other charities.
Other notable crypto assets recorded losses with Bitcoin and Ethereum going down by almost 8% as it dropped below the $4,000 price levels. Dogecoin went down by over 10% and Polkadot suffered the most with losses as high as 12%.
That being said, prices of most crypto assets have rebounded slightly as investors take advantage of the dip.