Bitcoin, Ethereum and a host of Altcoins suffered massive drops Tuesday night and Wednesday morning, erasing months of gains and hundreds of billions in market cap. The overall crypto market shrunk more than 20% over the past 24 hours according to crypto tracker CoinMarketCap.
What's behind the drop? Well, some may say the market was flying too close to the sun as investors piled into speculative and technically unremarkable projects like Dogecoin. Others may pin the blame on Elon Musk, who announced that Tesla would no longer be accepting bitcoin for Tesla purchases, which investors feared could trigger a broader backlash among corporate adopters who they hoped would be encouraged to put bitcoin on their balance sheets.
Not all cryptocurrencies are seeing the same fortune, while Bitcoin dropped to nearly $31K, more than half its all-time-high, Ethereum fell to prices it first reached last month. Some of the steepest losses were seen by Dfinity's Internet Computer token, which has shed nearly 60% of its value in the past week. Meanwhile, multi-chain development platform Polygon has surged throughout the broader crash, up 88% this week.
Public market investors got a taste for the crypto market's volatility as Coinbase stock fell 5% Wednesday morning, down more than 47% from its briefly achieved all-time high and 10% lower than its direct listing target price.