AAVE and Amp: Cryptocurrencies Going Toe-to-Toe
On April 14, bitcoin broke the $65,000 mark, and the financial media trumpeted the possibility of a jump to $100,000 and above. A growing market can turn even the most ardent skeptics into convinced bulls. JPMorgan Chase chairman and CEO James Dimon, for example, called bitcoin a “fraud” a few years ago and threatened to fire any trader of his bank who tries to buy the digital currency. But the events of recent months have made him swallow his pride, and now JPMorgan is offering its largest clients the opportunity to include BTC and other digital currencies in their portfolios.
Many cryptocurrencies (including bitcoin) have updated a record high on the day of the listing of the Coinbase (COIN) exchange on NASDAQ. On the first trading day, the shares jumped to almost $430, although the stated offering price was $250 per share. The market capitalization of COIN has reached almost $ 100 billion, which exceeded the value of CME or ICE — two well-established exchange platforms.
But gravity can be a powerful force. A few tweets from Elon Musk, concerned about the carbon footprint of miners, and the tightening of regulation by the Chinese authorities were enough to push prices off their peaks. China is preparing to launch the digital yuan and does not want competition, having done everything possible to maintain control over the money supply. Cryptocurrencies threaten governments because the power over wallets is a necessary element of control.
On June 22, bitcoin approached the minimum of 2021, and the ether dropped below $ 1,700
The dynamics of bitcoin and cryptocurrencies, observed since mid-May, cannot be called anything but a collapse.
On the weekly chart, you can trace the fall of BTC from the mid-April high of $ 65,520 to the June 22 low of $ 28,800. The low point of 2021 is located at $28,440; it was fixed in early January. On June 21, bitcoin bounced from its low to around $33,000.
Ethereum (the second largest cryptocurrency by capitalization) also fell sharply from its mid-May peak of $4,406.50.
On June 22, Ethereum dropped to a low of $ 1,697.75, after which it bounced back to $1,900. Now Ethereum is trading near the levels of the end of March.
In fact, bitcoin and ether have lost more than half of their capitalization compared to the levels of mid-April-May.