Crypto gets crushed as major coins plummet
The cryptocurrency collapsing today right now its down more than 10 percent. This big move lower testing coinbase, which reported service issues today lets get to eamon javers, who has been tracking the very latest on this amen. Yeah melissa, coinbase told us earlier in the day that they did have some problems related to volume. They said, though, that that was cleared up at about 1 40 p.m, east coast time heres, the tweet that they put out explaining what had happened. They said transactions are now going through normally, and service issues have been resolved, weve taken steps on our end to maintain stability and keep our services up. Thank you for your patience and understanding. While we worked to address this, so what happened here to cause all this? Well, heres, the explanation. Officially from coinbase they say a sudden increase in network traffic and market activity led to a degradation in our services were seeing improvement with our app services. However, transaction services are still degraded. Fund settlement will be delayed while we recover so not a clear answer in terms of a lot of detail of what exactly happened here but theyre saying simply, volume was the problem here, so uh. Clearly, a lot of interest in bitcoin today and other cryptocurrencies as we saw what happened in the uh overall crypto market today and then there you see uh coinbases stock price itself, taking a hit as a result of some of these issues they had today.
They do say, melissa, theyve now got it worked out and things should be getting back to normal before too long well, see overnight and into tomorrow morning, how that actually plays out all right eamon. Thank you. Amy drivers, tracking this. For us meantime, the big breakdown of bitcoin comes as el salvador becomes. The first country to adopt the cryptocurrency as legal tender lets bring in our own brian kelly joins us on the fast line. Um beaks thanks for joining us whats, your take on on the decline. Weve seen yeah, so i mean i hate to keep saying this, but it is somewhat normal to to what happens in bitcoin and what we saw today was really similar to what happened in may, where you get this cascade effect as stop orders ahead. So we had about three billion dollars worth of stop orders get hit and liquidated uh in a relatively short period of time that did coincide with some tweets from the president of el salvador, as well as some comments from the imf. So i think what happened is people got spooked stops were triggered and we just cascaded lower. What role did the coinbase difficulties outages, whatever you want to call it play in this if any yeah? So all the exchanges actually had issues when you get that big rush, the exchanges just arent at the point where they can scale out. So what does it do? It creates that vacuum so that on the initial downdraft theres no buyers there, and then you got to wait till they come wait till the exchanges come back up before you can get money back in and start buying again and were starting to see that now, how Big of a deal is el salvador.
I understand the symbolic nature of it, but polls show that people in el salvador are very skeptical of using bitcoin. So, even if this happens and remittances are what 23 of its gdp and mostly remittances from the united states, that that there might there might be slow adoption even with this adoptions legal tender yeah, i think you know listen, even if everybody in el salvador decided that They wanted to use bitcoin um, you know it probably wouldnt have that much of an effect, its a sentiment effect right and now youve got to think about the other countries that may start using this in south america um. You know you might see somebody the the big one would be brazil if they happen to have a currency breakdown, so its more about hey were giving this a shot. This is going to be kind of the trial run and everybody else around the world. Looking at it, that would be the bullish case. At the same time, people may not use it in el salvador yeah down 11 right now, bk, i mean a baller like yourself. This is probably not a buying opportunity per se, given that you say this is sort of run of the mill. You know trading action yeah. I think this is a buying opportunity, theres, nothing about the fundamentals that have um changed in my view were still seeing a lot of institutional adoption. Uh were still seeing money printing around the world, so this to me is a is a buy off brian, always good.
To speak with you all right, and i havent called brian brian kelly in years, um tim seymour, obviously emerging mark. I go to the emerging markets specialist naturally, because places like africa places like south america thats, where it would make a lot of sense for bitcoin to be adopted. Yeah, and i think whether its you know, fungible non fungible um. The rudimentary kind of usage were still 1.0, but this is. This is part of the future, and this is part of uh. What weve even talked about on fast money over the last three or four weeks, especially as weve gotten into the the boom in in nfts and whats, been going on in the art world and that youre actually seeing people think about things and actually do conversions back To back to ethereum and what it, what things actually cost and so were still so early on this um, i i you know, i think i said on todays call earlier – is that i i think people are licking their chops on this pullback um, especially when, as Brian reinforced that this is not fundamentally based really so um look. I i just think that theres, a lot of people that are starting to get some sense of of where uh commercial use is is beginning, and even if its in what i still think are going to be a lot of boom bust dynamics in call it. The art world, but um for now i think theres been a lot of value.
Thats been been been created and and well see, but uh. You know i think again. This is a very large headline in terms of el salvador in terms of the sentiment and yes, there are a lot of countries around the world where theres, zero confidence in their currency and those will be countries that will adopt faster, really bad news for coinbase. On a day when, when trading volume is really heavy guy for an exchange, i have difficulties, i mean it seems like thats the kind of day that the exchange needs to actually be functioning without a problem. Yeah extreme volume should be days that they wish for right, and it shouldnt be a problem, and – and i thought it was really interesting – that the stock didnt sell off more than it did. It just speaks to the fact that you know coinbase is not going anywhere. Its here to stay, and even with the sell off youre talking about a company with a 65 66 billion dollar market cap, i bring that up because they might be well deserved. Of that it might be going higher. But if that is in fact the case and ive said this on a number of occasions, the nasdaq should be a lot worth a lot more than the 35 billion, or so that theyre trading at so. How do you trade this well coinbase? I think its going to be fine. I think nasdaq is going to be the winner of all this.