There’s always been a certain amount of volatility associated with cryptocurrency and crypto stocks as well. But the entire crypto market took a certain amount of damage from just one move at the Binance exchange. From exchanges to coins, the whole field saw at least some measure of downward pressure.
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Both Bitcoin (BTC-USD) and Ethereum (ETH-USD) were down in Monday morning’s trading but recovered slightly going into the afternoon. Meanwhile, several key crypto-based exchange-traded funds (ETFs) were likewise down. The Amplify Transformational Data Sharing ETF (NYSEARCA:BLOK), the Bitwise Crypto Industry Innovators ETF (NYSEARCA:BITQ), and the ProShares Bitcoin Strategy ETF (NYSEARCA:BITO).
So what triggered this landslide? The whole issue traces back to Binance, a cryptocurrency exchange that halted Bitcoin withdrawals thanks to unusually high trading volume as well as rising processing fees. The Bitcoin network was congested, and LMAX Group market strategist Joel Kruger noted that there haven’t been any “major developments” in the Bitcoin space to explain market weakness aside from that sudden large outflow and paused withdrawals.
Despite the fact that all the listed issues were down, some are faring better than others. Amplify, which was down the least so far, also offers the lowest upside potential and lowest analyst opinion. It currently has a Hold rating with 33.92% upside potential thanks to its $26.17 average price target. Meanwhile, Bitwise was down harder but offers a better rating and upside potential. It currently has a Moderate Buy rating with 43.21% upside potential on an average price target of $9.01.
