Crypto Scoop: Bitcoin and Ethereum take a dive in red

The crypto space was abuzz with several emotions and excitement. Here are the highlights for this week:

• Bitcoin, Ethereum among several altcoins, take a dive in red
• Vitalik Buterin burns $6billion worth of SHIB Tokens

Ethereum and several altcoins follow as bitcoin dives into red

The crypto space took one of its biggest hits following a drop in the price of bitcoin, ethereum, and a few other cryptocurrencies in one of the biggest sell-offs.  Since its ATH of $64K, Bitcoin has long since experienced sell-offs following various market forces. However, it seemed to take its biggest hit this week when it almost hit $30,000. The bitcoin community couldn’t help but shudder at the major threat that faced the dominating cryptocurrency.

Ethereum had for weeks remained on top of its game as it hits new ATHs. This was why it came as a shock to ether enthusiasts when after Saturday, 15th May, it began a descent to as low as $2271. The price decline of Ethereum may have prompted the dump of several DeFi tokens such as Uniswap (UNI), yearn. finance (YFI), chainlink (LINK), among others.

Dogecoin, which seemed to be well back on its feet following an ATH of $0.7407, wasn’t exempted from the sell-offs, bringing its price to as low as $0.3108. These sell-offs had by Wednesday, 19th May 2021 culminated into a loss of about $460 billion in the total market cap of crypto assets. The resulting effect dropped the total market cap of crypto assets to as low as $1.65trillion.  Analyst of JP Morgan noted that the sell-offs had indeed sent several investors dumping bitcoin for gold. However, it maintained its stance that in the long run, bitcoin would still hit $140,000.

Bitcoin didn’t stay in red for much longer because, by the end of Wednesday, it began a recovery rally entering $40K. Ethereum wasn’t left behind as it also started a steady climb upward. Jeff Ross, CEO of Vailshire Capital Management, suggests that bitcoin has perhaps seen its worsts. This is because the recent market forces had prompted a short-term capitulation. This means that weak hands or short-term traders who were prone to selling their bitcoin at the slight hint of trouble had already done so. This means that bitcoin was safely in the hands of serious traders who would stick to bitcoin in the long run.

Read also: Crypto Scoop: JPMorgan Says Gold Will Suffer In Favour Of Bitcoin

Vitalik Buterin burns $6billion worth of SHIB Tokens

Ethereum Co-founder Vitalik Buterin burned $6.7 billion worth of the SHIB tokens, stating that he didn’t want that kind of power. He noted that he decided to burn 90% of the tokens in his coin by sending 410 trillion tokens to a dead blockchain address. He said he would send the remaining 10% to a charity of his choice that would share similar crypto relief values.

 Vitalik had previously just the last week gifted $1.2 billion worth of Shiba Inu Coin (SHIB) to an Indian COVID-19 relief that Sandeep Nailwal, Polygon founder, had set up. He noted that he didn’t want to be a locus of power of that kind and suggested that crypto creators gift those tokens to charities and not to him.

Buterin’s decision to burn the SHIB tokens has been taken in good faith by the SHIB community, who applauded his decision considering it a good cause.  The news of the token dump hasn’t created a significant price fluctuation in the token as although it bumped to as low as $0.00001880; it soon pulled itself back to $0.000016.

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