Why Bitcoin, Ethereum, and Dogecoin dropped and popped in the last 24 hours

Volatility is back in the crypto market.

| More on:
a shiba inu dog looks happily at eh camera with his tongue out while his owner hods him on his chest as he sleeps on a hammock.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Cryptocurrency markets are having another wild day and there have been ups and downs along the way. Values dropped early in trading on Wednesday only to recover slightly in the morning. 

As of 10:40 a.m. ET, Bitcoin (CRYPTO: BTC) had traded in a range of $22,779 to as low as $20,071 in the last 24 hours and is currently down 3.9% over that time to $21,247. Ethereum (CRYPTO: ETH) was on an even wilder ride, seeing a high of $1,266 and a low of $1,013, but it's down 7.3% in the last 24 hours to $1,113. Dogecoin (CRYPTO: DOGE) traded as high as $0.0574 and as low as $0.0503 and is currently down 4% at $0.0541. 

So what 

There are a number of factors impacting crypto trading and most of it is bad news. The Celsius Network continues to be in trouble and users still have frozen accounts. That's causing potential liquidations of leveraged positions and it's unclear what the solution is. 

At the same time, crypto fund Three Arrows Capital appears to be in trouble as its leveraged positions have come under fire. The company's founder said the firm is "working this out" but that hasn't given much confidence to the crypto market. 

In general, leveraged investments in cryptocurrencies have backfired and traders are having trouble unwinding positions. And there's far more risk in the system than many people thought, sometimes in places they didn't know to look. 

Now what 

It's hard to argue against this being a "crypto winter" in many ways and I think leverage once again is the cause of a lot of big losses. The problem in cryptocurrency is that it doesn't have the same regulations as the banking industry to keep individual investors safe or firms from taking positions they can't unwind. Right now, those two factors are coming to a head. 

I'm still bullish on cryptocurrency and Web3 in general as a tool for innovation and disruption in technology, but crypto becoming a trading tool with billions of dollars in leverage has led to unintended consequences. Now, the market is seeing massive losses and even retail investors don't know when the selling will stop. 

I wouldn't be buying the dip unless you have a very long-term time horizon and are willing to hold until this market turns around. Crypto will be back, but might be under stricter rules around the world and not every cryptocurrency will survive. For the sake of the industry's health, this shakeout might be a good thing in the long run. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Should you invest $1,000 in Betashares Australia 200 Etf right now?

Before you buy Betashares Australia 200 Etf shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Betashares Australia 200 Etf wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Travis Hoium has positions in Ethereum. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

More on International Stock News

A man looking at his laptop and thinking.
International Stock News

With Warren Buffett stepping down as CEO, will Berkshire Hathaway sell Apple stock?

Or will it find something else to invest in? Let's take a look.

Read more »

Man on his laptop standing next to data centres.
International Stock News

History says now is the time to buy Nvidia stock

History doesn't normally repeat itself, but it often rhymes.

Read more »

Woman relaxing and using her Apple device
International Stock News

16 words from Warren Buffett that should have Apple stock investors excited

Let's see what Buffett had to say and what it means for investors.

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway Warren Buffett
International Stock News

Prediction: Warren Buffett may be shifting out of his Berkshire Hathaway CEO role, but he's not done investing

Let's take a closer look at what may be ahead.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
International Stock News

Here's why I'm not too worried for Alphabet despite Apple's potential new AI-powered Safari search

Investors panicked when the possibility was floated, but take a step back and look at the bigger picture.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
International Stock News

Should you buy Nvidia before May 19?

Nvidia has been firing on all cylinders, and we may have a chance to hear more about this top AI…

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
International Stock News

Should investors be concerned about Berkshire Hathaway's record $348 billion cash position and third consecutive quarter of no stock buybacks?

Here's what the treasure trove of cash and lack of buybacks signal, and if Berkshire is still an excellent value…

Read more »

Woman in business suit holds both hands out with a question mark above each hand.
International Stock News

AMD vs. Nvidia: Which artificial intelligence stock should you buy on the dip?

Which of these two chip stocks is the better option right now?

Read more »