- BTC, ETH, and most other leading crypto tokens plunged Sunday in another day of selloffs.
- The market faced a heavy correction this week amid fears over China’s regulatory stance on crypto.
- Although sentiment has turned low, it’s unclear whether the bear trend will last.
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The cryptocurrency bloodbath continues.
Market Faces Heavy Correction
Bitcoin and other crypto assets plunged Sunday, days after one of the market’s biggest crashes in over a year.
The leading crypto slid 11.3% today, closing the week almost 29.7% in the red. It’s trading at around $33,320 at the time of writing. Ethereum is down 44.2% on the week after plunging 11.8% today. A number of DeFi blue chips, including the native tokens for Aave, Uniswap, UMA, Curve, and Sushi, are also down over 50% in the last week.
Bitcoin hit a record high of $64,804 in April, while Ethereum was trading above $4,300 on May 12. The rapid change in sentiment has led some to speculate on whether crypto has fallen into a bear market.
It’s still a bull market relax.
— kain.eth (@kaiynne) May 22, 2021
The market has been hit by several major selloffs in the last few days. By far the biggest was on Wednesday when Bitcoin crashed over 30%, bringing the rest of the market down with it. The dip followed three self-regulatory organizations in China clarifying the country’s stance on cryptocurrencies. In a statement, they reiterated bans from 2013 and 2017 that blocked payment institutions from providing crypto services and Initial Coin Offering sales. The note read:
“Virtual currency’s prices have soared and plummeted recently, resulting [in] a rebound of speculative trading activities of virtual currency. It has seriously damaged the safety of the people’s investment and damaged the normal economic and financial orders.”
The Wednesday crash was crypto’s biggest retrace since Mar. 2020 when the market tumbled in response to Coronavirus. Following the dip,…