Cryptocurrency Prices Dropping across the Board, Minor Recoveries May Be False Breakouts

Timothy St. John•Friday, May 21, 2021•2 min read

Why do Crypto Charities like Elongate and Munch Raise Millions of Funds?

This week, a number of cryptos took a nosedive, with Bitcoin falling a massive 30%. The digital asset market as a whole was down 10%, following months of mostly positive news for the market.

BTC

We have seen Dogecoin go from an underdog to a real competitor this year, taking the number four spot in popularity among cryptos but also suffering major losses this week. Dogecoin dropped to $0.29 this week, down from $0.75.

Many investors fear that this can be the beginning of the speculator bubble bursting, something that has been predicted for a while now. As many cryptos skyrocketed month over month from the start of this year, the massive drop this week could be an indicator that the bubble has burst and the market may not recover for months now.

As some cryptos doubled and tripled their value from week to week, many analysts warned that this was not sustainable. Some of the drop in the crypto market can be attributed to social media posts from Tesla founder Elon Musk, saying his company will not accept Bitcoin for now. His company may be providing support for Dogecoin, though, as Musk has voiced a lot of interest in this crypto currency.

Despite its struggles this week, Dogecoin managed to take the number three spot in cryptocurrency popularity, its highest ranking so far. Ethereum (ETC) currently sits at number two, with a value of $2,578.29 US. Litecoin holds the number four spot previously held by Dogecoin with a value of $202.97 USD per coin.

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ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.