Cryptos Just Puked…

Bitcoin (and Ethereum) just took a second, larger, leg lower after ramping across the long weekend ahead of El Salvador’s ‘Bitcoin Day’ legal tender rollout.

Bitcoin plunged from $53k to below $49k…

Source: Bloomberg

Did someone want to show El Salvador the error of their crypto adoption ways?

Cointelegraph contributor Michaël van de Poppe suggests Bitcoin needs to hold the area between $49,500 and $50,000 in order to preserve its trajectory.

“If that is holding, we’re going to look at $58,000 next,” he said in his latest YouTube update.

“If it doesn’t hold, I’m going to look at $44,000 next, as there might be a swift downwards move.”

And Ethereum has tumbled back below $3500 (and was notably less bid on the El Salvador excitement)…

Source: Bloomberg

Some chatter that the ETH move was triggered by short-term rotation to Solano after NFT headlines.

Interestingly this rapid down move across crypto fits with JPM’s Nick Panigirtzoglou’s comments from last week suggesting some of the froth was expected to leave the market in the short-termThe previous phase of retail investors’ “mania” into cryptocurrency markets was between the beginning of January and mid-May when the share of “altcoins” had risen from 13% to 37.6%. While far from the record high of 55% seen in January 2018, at 32.6% the share of “altcoins” looks rather elevated by historical standards and in our opinion it is more likely to be a reflection of froth and retail investor “mania” rather than a reflection of a structural uptrend. The mirror image is an uncomfortable low share for bitcoin in particular which at 42%  currently sits at uncomfortably low level by historical standards .