Bitcoin Collapses to 10-Week Lows, Binance Backs Musk’s Twitter Deal With $500M: This Week’s Crypto Recap

Time Stamp: May 6, 2022 1:42 PM
Source Node: 1295336

Bitcoin’s price crashed to levels that we last saw on the day that Russia invaded Ukraine. Moreover, the entire market lost over $150 billion of its capitalization as the past 24 hours caused nothing but mayhem in the industry.

Bitcoin’s price is down 9% in the past seven days, and it’s currently trading slightly above $36K. This time last week, the cryptocurrency was sitting slightly below $39K, and the week was going relatively well. The price managed to increase towards $40K, but unfortunately, everything took a turn for the worst yesterday.

BTC crashed from $39.5K to $36K in less than a couple of hours, leaving over $100 million worth of liquidated positions in the process. At the time of this writing, the price has failed to recover. Interestingly enough, this happened as the Luna Foundation Guard (LFG) announced yet another purchase of $1.5 billion worth of BTC.

Needless to say, this took the entire market with it, although some altcoins are faring slightly better than BTC, whereas others lost more. Ethereum, for instance, is down less than 8%, while BNB is down 6%. ADA is down 7%. On the other end of the spectrum we have Solana, which lost 16%, DOT – down 16%, AVAX – 15%, SHIB – 13%, and so forth. Ultimately, this led to an overall pullback worth around $150 billion of the entire market cap.

The above aside, recent filings revealed that Binance – the world’s leading cryptocurrency exchange – has backed Elon Musk’s deal to buy Twitter and take it private by supplying a whopping $500 million to the initiative.

Elsewhere in the markets, the US Federal Reserve announced another rate hike within the limits of the expected – 0.5%. The goal is to combat the growing inflation.

This said – it remains very interesting to see how the markets will fare in the coming week as global geopolitical uncertainty seems to be growing.

Market Data

Market Cap: $1,750B | 24H Vol: $125B | BTC Dominance: 39.3%

BTC: $36,150 (-9%) | ETH: $2,699(-7.9%) | ADA: $0.78 (-6.8%)

06.05

This Week’s Crypto Headlines You Can’t Miss

Luna Foundation Guard Purchased Another $1.5 Billion Worth of Bitcoin. The Luna Foundation Guard (LFG) purchased yet another stack of BTC worth $1.5 billion to back its UST stablecoin reserve. The buy happened as LFG raised $1 billion in an OTC swap with Genesis and 3AC.

Otherside’s NFT Drop Temporarily Turned Ethereum Into a Deflationary Asset: DappRadar Reports. Yuga Labs went through with the much-anticipated launch of their Otherside NFT drop. The demand for it was so high, causing ETH gas prices to soar and turning Ethereum into a deflationary asset for a brief period of time.

Binance Scores First European Regulatory Approval in France. The leading cryptocurrency exchange has managed to achieve a major milestone. The company got registered as a Digital Asset Service Provider (DASP) in France by the country’s stock market regulator.

Fed Announces 0.5% Rate Hike to Fight Inflation, Highest in 22 Years. The US Federal Reserve announced another 0.5% rate hike in an attempt to battle the increasing inflation. This was the highest hike in 22 years that was voted in during the latest FOMC meeting that took place this week.

Tether Has No Plans to Go Public: CTO Paolo Ardoino (Exclusive Interview). In an exclusive interview with CryptoPotato, Tether’s CTO – Paolo Ardoino – revealed that the company behind the world’s largest stablecoin by means of market cap – has no intentions of going public.

Ripple CEO Believes SEC Lawsuit Could Be Resolved This Year. Brad Garlinghouse – the CEO of Ripple – believes that the lawsuit between the company and the United States Securities and Exchange Commission could be resolved by the end of this year. He said that it’s been going well so far.

Charts

This week we have a chart analysis of Ethereum, Ripple, Cardano, Tron, and Shiba Inu – click here for the full price analysis.

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