Crypto news and market reactions on Bitcoin’s Hashrate drops affect LSK volatility
Last week was epic in the crypto industry as Coinbase, one of the earliest cryptocurrency exchanges, finally staged its Direct Listing on Nasdaq at a market valuation close to $100 billion. As the biggest exchange in the US coupled with its sizable market share in the industry, the market reacted positively with Bitcoin price smashing a new all-time high that was short-lived with an 18% fall in price after that. As the king cryptocurrency dropped in price, so did other alts, including LSK token price.
LSK started the week with a price of $6.29 and a market volume of $78 million. Its price drummed up to $7.04 with a slight increase in 24-hour volume at $79 million on the 16th of April. The news of Coinbase imminent direct listing was perhaps the most credible factor that led to market uptick as most cryptos in the market reactive positively in price towards the epochal event. Bitcoin’s price peaked at $64,388 on April 14th, the exact day Coinbase direct listing took place on Nasdaq. But the downtrend began the same day, possibly due to variances between expectation and reality. The market will then go ahead to dip $54,227, representing about an 18% drop from its recent all-time high.
Recall that Lisk shot up to $7.04; it, however, dipped to $5.11 and even further to $4.78. As of the time of writing this report, it traded at $3.96, representing a 17% further price decrease. Overall, the market has consolidated as the cryptocurrency industry total market cap is $2.05 trillion as of writing.
Even though Bitcoin’s hashrate dropped by over 40% within the previous week due to power outages and a coal mine accident in Xinjiang, China, a major center for the Bitcoin mining industry, the most credible reason for market dump can allude to liquidations and flushing of the excessive leverage across exchanges. A lot of traders had increased their leverage exposure, likely in anticipation of the Coinbase direct listing. Expectedly, the risk of a long squeeze and cascading liquidations had built up in the system, which led to flushing by extreme volatility the market experienced during the weekend.
While Coinbase becomes the first global cryptocurrency exchange for having successfully undergone a direct listing and going public, Lisk Foundation is still exploring a possible US exchange listing. Max Kordek confirmed they had reached out to various law firms to acquire a legal opinion required for US exchange listings. Even though he expressed light pessimism of an eventual Coinbase-Lisk listing, Max believes other US-based exchanges with high daily trade volume could be possible.
As Max Kordex had said in one of the AMA sessions, Lisk Foundation is ramping up marketing efforts this year even as it aggressively develops its protocol releasing core and supporting LIPs. The most crucial event on the Lisk ecosystem calendar between now and May is the Lisk.js conference set to hold on the 21st and 22nd of May. Max Kordek said they decided to make the event two days, so the foundation team and the league of brilliant developers all across Europe will have enough time to discuss and deliberate on crucial developments like the proposed interoperability solution, among other significant updates.
For more details on the Lisk.js conference on the 21st and 22nd of May 2021, visit the Lisk.js official page to learn more.