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Elon Musk tweets spark Friday crypto market sell-off

2021.06.04 Adam James

It only took another tweet from the Tesla CEO to send the cryptocurrency markets tumbling. 

The cryptocurrency market has sold off on Friday following a pair of tweets from Elon Musk that seemingly celebrates the Tesla CEO's ability to manipulate the price of BTC — which immediately dropped more than 6%. The price of ETH dropped by more than 8%, while Musk-favorite DOGE dropped by more than 15%.

The cryptocurrency market has sold off following a pair of tweets from Elon Musk. Source: Coin360

According to multifactorial analysis from alternative.me, the market is no longer extremely fearful. Participants in the cryptocurrency market are less fearful than they were yesterday and earlier in the week — though that may change following the Musk-induced decline in prices.

Sentiment in the cryptocurrency market has increased slightly. Source: Crypto Fear & Greed Index

Curve Finance retakes position as top decentralized exchange

The total value locked in decentralized finance has dropped to under $65 billion alongside the wider cryptocurrency market decline. Aave, Maker and Polygon have seen TVL declines of more than 8.5%, 7% and 6.5%, respectively.

Stablecoin-focused decentralized exchange Curve Finance has retaken the top spot among DEXs after gaining nearly 1% on the day. At the same time, Uniswap and SushiSwap have lost 3.6% and 5.8%, respectively.

The total value locked in Curve Finance has increased steadily since the last week of May. Source: DeFi Pulse

Top altcoin gainers and losers: Heavy losses across the board

  • NU/USDT +25.55%
  • XUC/USDT +13.18%
  • ETM/USDK +11.60%
  • LUNA/USDT -15.74%
  • GRT/USDT -16.47%
  • DNA/USDT -18.11%

Not many cryptocurrencies are seeing gains on OKEx, with FIL being the only non-stablecoin altcoin with a market capitalization greater than $1 billion to have increased in valuation. At the same time, major altcoin LUNA has been hit the hardest among major altcoins after dropping nearly 16%.

LUNA is the worst-performing major altcoin on OKEx today. Source: OKEx

BTC technical analysis: Still in an ascending triangle

The price of BTC is finding some support along an upward-sloping trendline, which has created something of an ascending triangle pattern. Should buyers be able to hold the price at support, the foremost cryptocurrency could make another attempt at 40,000 USDT over the weekend.

OKEx's BTC/USDT 4h chart — 6/04. Source: OKEx, TradingView

ETH technical analysis: At risk of losing ground to BTC

The price of ETH is in danger of losing its bullish momentum against BTC. The four-hour ribbon of exponential moving averages is currently providing support, but the ETHBTC uptrend is at risk of being broken.

OKEx's ETH/BTC 4h chart — 6/04. Source: OKEx, TradingView

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.