Crypto Scoop: Bitcoin and Dogecoin Plummet
This week has marked a significant dip for bitcoin and Dogecoin, which were on top of their game just last week. Given what is happening in the crypto space, we would examine the price dips and crypto projects that are gaining mass adoption.
Let's get right to it!
- Bitcoin hits worst dip since February
- Dogecoin experiences dip after fans celebrate Dogecoin Day
- Ether reaches new ATH
- Morgan Stanley's Bitcoin Fund Scheme draws $29.4M in 2 weeks
Bitcoin hits the worst dip since February
The past few months have recorded a consistent increase in its ATH for the world's largest cryptocurrency, bitcoin. However, after reaching its highest ATH of $64,854 last week, it has hit a significant dip, bringing it as low as $48,401.
Analysts suspect that this might result from the new tax regulations introduced by Joe Biden that doubled capital gain tax. Turkey also experienced a significant hit in their ecosystem that banned trading with cryptocurrencies. These happenings worldwide might have triggered a fear in traders and investors that resulted in the dip.
Dogecoin experiences dip after fans celebrate Dogecoin Day
Fans took to Twitter and other social media platforms, declaring April 20th as Dogecoin day as they rallied to a new ATH. Just last week, Dogecoin skyrocketed in value, becoming the tenth largest cryptocurrency in the world. This geared more interest in the coin, with its users from around the globe choosing to declare April 20th dogecoin day in celebration of its new ATH. This rally by fans increased the price value by about 20%.
However, a few hours after the declaration of dogecoin day, it began its slow descent in red, going as low as $0.16. This came as a shock to onlookers who were expecting that the price of Dogecoin might rise to $1. However, the dip might have occurred because the rise in value resulted from the sudden price gain and social media rallies. Investors may have been reconsidering their position after the purchase.
Ether reaches new ATH
This week, Ether set a new record as it hits an ATH of $2,645.14.
Ether was able to reach a new ATH while other cryptocurrencies were struggling to regain their foot following sell-offs. However, perhaps the reason why Ether remains on a bullish run is that its supply is running low. This is because ETH investors are more inclined to either use their Ether for collateral contracts or hold it in a cold wallet. Although Ether might have experienced a dip a few hours later after it reached a new ATH, analysts are optimistic that ETH is on its path to set a new ATH.
Morgan Stanley's Bitcoin Fund Scheme draws $29.4M in 2 weeks
Just two weeks ago, Morgan Stanley launched a new bitcoin product that has since then attracted 322 investors with an investment of $29.4 million. The investment turnover suggests that investors are keen on bitcoin products and seek to actively participate in its projects as bitcoin adoption increases. The bitcoin fund was one of the two bitcoin funds the bank launched, managed by FS investors, and stored in the NYDIG service.
According to Morgan Stanley's policies, clients who wish to invest in this project must own at least $2million and cannot invest more than 2.5% of their total wealth. The bank notes that it is ready to offer more cryptocurrencies services if interest in its products persists.