As The Bitcoin Price Holds, These Smaller Tokens Are Still Crashing—Erasing $100 Billion Of Crypto Value

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Bitcoin and cryptocurrencies have been in a tailspin in the past few days as a renewed crackdown by Chinese cryptocurrencies is causing fear among traders.

Bitcoin price managed to stay above the closely watched level of $ 30,000 per bitcoin, falling to a low of $ 31,160 on the Luxembourg-based Bitstamp exchange before gaining some ground again. Bitcoin price is now around 50% below its all-time high of nearly $ 65,000 that was set in April.

Meanwhile, other smaller cryptocurrencies that have surpassed Bitcoin price in the past few months have collapsed – with meme-based Dogecoin, Ethereum rivals Polkadot and Solana, Ripple’s XRP, and the busy token Safemoon – still in freefall.

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Bitcoin price has been slashed in the past few days amid fears of a new China … [+] crackdown on cryptocurrencies, but some smaller tokens including Dogecoin, Safemoon, Polkadot, Solana and Ripple’s XRP have been hit harder.

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Dogecoin, Tesla billionaire Elon Musk’s crypto pet project, is down nearly 40% in the past week and is about 72% off a high prior to Musk’s much-hyped appearance on the comedy sketch show Saturday Night Live on the May was reached.

Dogecoin price has lost 20% in the past 24 hours, compared to a 1% drop in Bitcoin price. Meanwhile, Safemoon, a new cryptocurrency even referred to as the Ponzi scheme by some of their own investors, has fallen 11% and 30% below its all-time high from last month in the past 24 hours.

Elsewhere, Ethereum rivals Polkadot and Solana, as well as Ripple’s XRP payment token, have continued their descent after seeing triple-digit percentage gains in recent months. The slump in the past 24 hours has wiped around $ 100 billion off its combined cryptocurrency market cap, which is now worth around $ 1.3 trillion – up from $ 2.5 trillion in May.

As the dust settles over the recent crashes in Bitcoin and cryptocurrency prices, Bitcoin industry officials are investigating what led to the sell-off and where the market is headed from here.

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MORE FROM FORBESBillionaire Crypto Exchange CEO Reveals Dogecoin SurpriseBy Billy Bambrough

Bitcoin price has lost about 20% of its value in the past week but has stabilized … [+] at just over $ 30,000 per bitcoin, even if Dogecoin, Safemoon, Polkadot, Solana and Ripple’s XRP fight.

Coin base

“There are several reasons for [bitcoin’s] short-term weakness, including renewed strength of the US dollar due to the restrictive Federal Reserve, accelerated ban on crypto mining companies in China and blocking of banking services to crypto companies and a lack of institutional interest in crypto, ”said Pankaj Balani, the Singapore-based Bitcoin exchange Delta chief executive officer said in email comments.

“Still, we believe there is not much downtrend in Bitcoin in the short term as we are trading near the lower end of the $ 30,000 to $ 42,000 range. In the short term, the macro environment doesn’t look weak as the broader markets hold up. ”To a rally and US tech stocks with weekly all-time highs. We expect Bitcoin to bounce back from here and challenge the $ 40,000 mark again in the coming weeks. $ 30,000 is the single most important level traders should watch out for – a conclusive break below $ 30,000 could be linked to strong sales activity in Bitcoin and the overall crypto market. “