Cryptocurrencies were initially performing quite well over the last two days of the Bitcoin2021 conference taking place from June 3 to June 5. This is the largest crypto conference globally with nearly 50,000 attendees.
The event includes discussions about the global future of digital currencies and is headlined by Jack Dorsey and Tony Hawk, a renowned pro skater. It is not a surprise that the event is being held in Miami, given that the city has stood out as a major hub for cryptocurrencies. Miami’s Mayor, Francis Suarez, had earlier announced plans to convert some of the city’s funds into Bitcoin.
Yesterday (June 3), bitcoin was trading at around $38,700, a 3.65% increase in 24 hours, while ethereum had gained by 4.7% to trade at $2,830. BNB was also up by 10% while dogecoin had increased by 7% compared to the previous day.
Perfect Timing
The Bitcoin2021 conference comes at a perfect time for those who see it as providing a welcome boost for the sector, given that nearly $1 trillion was wiped off the market during the May market meltdown. Bitcoin, the most popular cryptocurrency, declined by 30% from the above $60,000 level reported in April 2021 to the current value of below $40,000.
Due to the panic created by the recent crash, a number of crypto gurus have come forward to reassure the community that the market will recover. Adam Levine of CoinDesk commented on the crash stating that it was not different from similar ones in the past.
Some analysts had predicted prices of cryptocurrencies to recover in what was termed as the ‘Miami effect. True to the predictions, the value of the most popular cryptocurrencies in recent days have slightly risen past their initial bearish levels – that was until Elon Musk tweeted the hashtag bitcoin and a broken heart emoji last night.
Will the ‘Miami Effect’ Match up to the ‘Consensus Effect’
Previously in the crypto market, there has been what was termed the ‘Consensus Effect’. The effect states that the prices of cryptocurrencies increase whenever the annual CoinDesk Consensus Conference happens in New York. The 2021 CoinDesk Consensus took place in May 2021 but its effect on the crypto market was not inline with the theory against the background of the recent market turmoil.
The founder of Quantum Economics, Mati Greenspan, talked about the Consensus effect in his latest newsletter, stating that “The idea is that a gathering of several thousand people speed networking, sharing ideas and closing deals can be a boon for grassroots growth in the industry.” Greenspan also hinted that the Bitcoin2021 conference could have the same effect on the market as the CoinDesk Conference.
With one day to go, it is yet to be seen whether the ‘Miami effect’ will help the crypto market recover from the recent meltdown. If all goes well, cryptocurrencies it may help crypto to regain its bullish bearings.
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