Chinese crypto-linked stocks like Meitu are seeing big corrections after the Ethereum dump

Chinese public company stocks fell sharply today after cryptocurrencies like Bitcoin, Ethereum and others fell massively on Wednesday, data from multiple sources shows.

Yesterday, over $ 8 billion in liquidations (or collateral seized from exchanges after asset prices hit predetermined levels) and over 350,000 trading accounts were liquidated as Bitcoin, Ethereum and other cryptocurrencies fell double digits.

Bitcoin fell to just $ 29,000, Ethereum to $ 2,000, with some DeFi majors like SushiSwap (SUSHI) even falling 40%. And in the midst of it all, the companies involved in cryptocurrencies – through treasury holdings or as part of the mining supply chain – also suffered huge losses.

Public corporations fall after crypto fear

Meitu, a photo editing company listed on the Hong Kong Stock Exchange, is up 8% this morning. The photo editing app includes billions of dollars worth of Bitcoin and Ethereum as part of their treasury funds, and traders likely responded to yesterday’s fall.

Image: ETH / USD via TradingView.

Some others saw similar results. According to the local newspaper South china morning postAn index tracking 50 cryptocurrency-related stocks fell 1.6% on the Shanghai and Shenzhen stock exchanges.

A mainland-listed company called Shenzhen Asia Link, which provides third-party payment services used by crypto companies, topped that list, falling 10% in the session before trading was suspended from the exchange.

In other parts of the US, Bitcoin-related companies like MicroStrategy and Tesla have also been successful, with MSTR losing -6% and TSLA relatively -2% in the New York trading session.

The decline came a day after an “FUD” development from China said the country was Once again, prohibit the use of cryptocurrencies. The rumor has been exaggerated, however, with the report being a repeat of an earlier statement.

Meanwhile, at press time, the crypto market appears to be moving upwards and buyers stepped in last night. ETH gained over 9% and is trading at USD 2,665, while Bitcoin is trading just under USD 40,000. However, the Fear and Greed Index tells a different story, suggesting that the market is currently in an “extreme fear” state.

The Bitcoin Fear and Greed Index is 11 – Extreme Fear

– Bitcoin Fear and Greed Index (@BitcoinFear), May 20, 2021

Get one Edge on the cryptoasset market

Access more crypto insights and contexts in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Sign up now for $ 19 / month. Discover all the advantages Protect your wealth: Invest in a Crypto Index Fund

Do you like what you see? Subscribe to updates.

Comments are closed.