Gate.io’s Daily Market Trends（May 20）: Crypto Market Bounces Back, ARK’s Wood Believes in Bitcoin Reaching $500,000

2021-05-20, 04:50

At 12 o'clock in the U.S. Eastern time, the spot price of Bitcoin was 38331.24 and the spot price of Ethereum was 2471.31 US dollars. The market continued to be affected by the announcement of the People's Bank of China and entered a severe panic on the evening of the 19th. The spot price of Bitcoin fell below the 30,000 U.S. dollar mark and Ethereum fell below the 2,000 U.S. dollar mark. After 22:00 on the 19th, the price of Bitcoin left the downward channel and entered a state of adjustment. The bottom price of $34,000 received temporary support. The spot price of Ethereum also rebounded, but the attempt to break through the $3,000 mark failed. In general, at noon on the 20th, both Bitcoin and Ethereum entered a sideways adjustment, and both buyers and sellers were in an equilibrium state. However, the market panic was still serious. It is not ruled out that other emergencies may once again cause a huge impact on the market.According to the Coin market statistics, in the past 24 hours, about 520,000 people have liquidated their positions, with a total liquidation of 43 billion. Gate.io urgently launched the explosion protection measures, and mortgage borrowers extended the deposit and repayment time.

After the Bitcoin price and other crypto currencies dropped for a whole day, Elon Musk tweeted, “Tesla has Diamond Hand”, which was interpreted that Tesla believed in Bitcoin and would not sell any of them at this point. Meanwhile, Cathie Wood, the famous founder CEO and CIO of ARKinvest, also expressed her belief in Bitcoin during an interview with Bloomberg Business. Wood said, “You never know how low is low when the market is emotional...We were looking at all the indicators this morning and we think this is a great time to buy.” Wood also predicted that the price of Bitcoin will reach $500,000 in the future. Not long after their comments, the price of Bitcoin bounced back to $40,000.

The crash also shook the U.S. stock market. By the end of the day, major blockchain stocks also dropped. Coinbase dropped over 5%, The9 Limited dropped over 10%, Cannan dropped over 13%, Bit Digital and 500.com Limited dropped over 17%. Many analysts believed that the crash of the crypto market had led to investors losing their faith in crypto currencies. Thus, they were more willing to invest in other products instead of the crypto market.

Gate.io spot price (as of 13:00 Beijing time)
BTC: 39670.74 USD (-12.37%); ETH: 2964.55 USD (-14.90%); DOGE: 0.4072 USD (-18.65%); SHIB: 0.0000129 USD (-24.27%); GT: 5.85 USD (-24.15%); XRP: USD 1.43 (-6.96%); ADA USD 1.69 (-19.47%)

Author: Gate.io Researcher: Charles F. & Gazer C.
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