Bitcoin Plunge Wipes $500 Billion From Value in Crypto Rout
Bloomberg 39 mins ago
(Bloomberg)
The crypto bubble that inflated Bitcoin’s value past $1 trillion and added billions to nonsense digital tokens overnight is bursting.
Bitcoin plunged as much as 29%, wiping out more than $500 billion in value from the coin’s peak market value. It was down 15% to $36,700 as of 10:53 a.m. in New York. It has erased all the gains it clocked up following Tesla Inc.’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles. Ethereum, the second-biggest coin, sank more than 40%, while joke token Dogecoin lost 45%.
Bitcoin fluctuates around $40,000 as Musk-fuelled rally collapses
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Bitcoin fluctuates around $40,000 as Musk-fuelled rally collapses
The cryptocurrency is now down around 40 per cent from its record of almost $65,000 set in April
The Elon Musk-propelled rally in bitcoin just evaporated.
The world’s largest cryptocurrency has erased all the gains it clocked up following Tesla’s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles. Now traders are bracing for more pain as the token hovers around a key technical level.
Federal Reserve to pare back its support soon. Investors will also focus on minutes from the Fed s April policy meeting, where it stood pat on interest rates. The statement is due to be issued at 2 p.m. ET (1800 GMT). Strong inflation readings and signs of a worker shortage in recent weeks have fueled fears of inflation and roiled stock markets despite reassurances from Fed officials that the rise in prices would be temporary. There is no question that inflation worries have creeped into the investor mindset which will weigh on the tech stocks and, in all likelihood, we will see yields go up, said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
The coin pared its loss to 10% as of 12:40 p.m. in New York, up $8,000 from its lows. It has erased all the gains it clocked up following Tesla Inc.s Feb. 8 announcement that it would use corporate cash to buy the asset and accept it as a form of payment for its vehicles.