Wall Street Records Worst Day Ever While BTC And ETH Rebound

Wall Street records worst day ever as it was rocked by GameStop while BTC and ETH managed to rebound so let’s read more in our latest cryptocurrency news.

The crypto markets are bouncing back from a week of losses while Wall Street records the worst day since October. BTC and the rest of the market seem to have rebounded from a few days of losses and the defi projects are booming as more sophisticated products are emerging online. Wall Street records its worst day since October as the GameStop controversy forced short sellers to pay and maintain their positions.

Bitcoin, on the other hand, hit new lows a day ago but bounced back above $31,000 and seems to be trading steadily. ETH’s price followed the one of BTC and also bounced back. For the first time in a week, the rest of the projects in the top 20 are back in the green with the biggest gains coming from LINK as it increased 6.6%, Uniswap did well too with a 7.5% increase and Aave by 6.4%. Aave and Uniswap racked up the gains for a week as DeFi continues its streak among investors.

The rising sophistication in products and services seems to be the reason behind DeFi’s resurgence. A report on the trends in Defi suggests that tools found in big banks are now showing in the decentralized space. One, in particular, was extremely popular like tranche lending. This tool many suggested it was the reason for the 2008 financial crisis as it was being used by a few companies to help compile the array of lending and liquidity pools that swirled around Defi. The products are still developed but the interest rates are offered in decentralized finance and these governance tokens of companies that facilitate swaps are becoming the most consistent way to make money while the broader market is spiked with volatility.

On Wall Street, S&P500, The Dow, and Nasdaq were all down for what was seen as the biggest drop since October 2020. On the S&P500 communication, financial, healthcare and services were the biggest losers on the stock market. Maerck, Boeing, and Disney were the worst performers with 4% losses each. The Nasdaq was down 2.5%, Netflix 6.2%, PayPal 4.65%, and all big tech stocks being hit. The major talk on Wall Street is GameStop and its short squeeze of Redditors who brought it on on the hedge funds. A group on Reddit identified that a large hedge fund was shorting the gaming company to make a profit so the group of investors decided to enter the market and force the price of the stock up which left the hedge funds covering their losses of $100 million dollars.