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Crypto market wrap: Bitcoin falls again, others fare better

By Monte Stewart


Updated

Photo of cell phones
Bitcoin fell again Tuesday as other cryptocurrencies fared better but were still down – Photo: Getty Images

Bitcoin fell again Tuesday but other cryptocurrencies fared better as the overall market showed improvement one day after a heavy beating. 

In many cases, the improvement was relative as coins stayed in the red but were not hammered like they were Monday, when crypto lender Celsius froze all of its withdrawals and transfers and sent the market southward.

BTC to USD

According to Capital.com data, Bitcoin (BTC) was down about 7% – a modest decline compared to Monday’s 15% drop – in afternoon trading in North America. Bitcoin is at its lowest point since December 2020 and is selling for less than half of its November 2021 price.

Bitcoin educator and evangelist Andreas Antonopoulos said “the current crash suggests a further crash is likely.”

“While no one knows exactly where bitcoin’s bottom [price] is, it’s clear that investor interest in the cryptocurrency is waning,” he wrote on a WhatsApp channel followed by cryptocurrency enthusiasts.

“How low will it fall? This is the question facing bitcoin and investors who remain bullish on cryptocurrencies.”

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BNB to USD

Binance down 3%

Binance (BNB) was down about 3% after tumbling 14% on Monday.

Cardano (ADA), which has become an investor darling as it prepares for a June 29 blockchain network upgrade known as the Vasil hard fork, got back in the green, rising slightly after dropping about 9% on Monday. That marked one of the few times lately that Cardano had not posted a gain.

BTC/USD

65,678.05 Price
-3.540% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

ETH/USD

3,482.63 Price
-0.350% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

SOL/USD

173.83 Price
-5.260% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

XRP/USD

0.60 Price
-3.570% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

Solana stayed in the green throughout the day but rode the proverbial roller coaster as its price fluctuated between $29.50 and $31.50.

At one point Tuesday, Bitcoin was down 10% before rallying. MicroStrategy has invested heavily in bitcoin but investors fear that the company could face a margin call on a large debt because its bitcoin-backed loans reserve may now lack sufficient collateral.

MSTR price in USD

 

Appetite for Celsius

Investors also showed appetite for the Celsius Network coin (CEL) after it imploded overnight from Sunday to Monday. CEL rose approximately 5% – a day after plunging 75% from where it was a week earlier.

Cryptocurrency prices have plunged since January in line with an overall investment market decline. But according to Antonopoulos, investors are interested in buying the dip on Vechain (VET), which also rode the roller coaster on Tuesday – for the second straight day – and got into the green periodically. He noted that Vechain was up more than 5% in morning trading in North America, but it was down about 5% later in the day.

“The current market sentiment is positive and [Vechain] prices are expected to rise in the short term,” he wrote.

Markets in this article

BTC/USD
Bitcoin / USD
65678.05 USD
-2413.95 -3.540%
BNB/USD
Binance Coin / USD
588.09 USD
-13.41 -2.250%
MSTR
MicroStrategy Incorporated
1723.33 USD
-72.32 -4.040%
VET/USD
VeChain / USD
0.02939 USD
-0.00122 -4.070%

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Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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