Bitcoin plunges over 20 pct in another indication of global market nerves
Bitcoin plunged along with other cryptocurrencies on Saturday, in another indication of the risk aversion sweeping across financial markets.
The largest digital token fell as low as $42,296 before paring some of the tumble. It was trading at about $47,600 as of 1:50 p.m. in Singapore on Saturday, a drop of about 11 percent.
For the latest headlines, follow our Google News channel online or via the app.
Ether, the second-largest token, fell as much as 17.4 percent before trimming the retreat to about 10 percent. The overall crypto sector has shed around a fifth of its value, sliding to $2.2 trillion, according to tracker CoinGecko.
The swings in cryptocurrencies come amid a volatile period for financial markets. Spiking inflation is forcing central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that lifted a wide range of assets.
The Omicron variant of the coronavirus has also led to risk aversion over concerns about what it might mean for global economic reopening.
Global stocks are down more than 4 percent from a record in November, while haven assets like Treasuries have rallied.
Some leveraged buyers of Bitcoin were flushed out in Saturday’s crash, according to Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore.
“Markets have also been jittery with all the uncertainty around Omicron, with cases now appearing in many countries,” he said. “It’s hard to say what that means for economies and markets and hence the uncertainty.”
About $2.4 billion of crypto exposure, both long and short, was liquidated on Saturday, the most since Sept. 7, according to data from Coinglass.com.
Bitcoin, famed for its volatility, has shed about $21,000 since hitting a record on Nov. 10.
But it’s still up more than 60 percent this year, a return that exceeds many other assets -- and El Salvador’s President Nayib Bukele said the country had again bought the dip, adding 150 coins. The nation this year adopted Bitcoin as legal tender.
“As usual, since crypto traders deploy leverage it results in cascading sell orders and liquidations, said Antoni Trenchev, co-founder of crypto lender Nexo. “We should find support around $40,000 to $42,000 and then rebound in line for an end-year rally. If that does not hold, we might revisit the July lows of $30,000 to $35,000.”
Read more: US biggest bitcoin miner after China crackdown: Cambridge study
El Salvador plans first ‘Bitcoin City,’ backed by bitcoin bonds: President BukeleEl Salvador plans to build the world’s first “Bitcoin City” which will be funded initially by bitcoin bonds, President Nayib Bukele said on Saturday, ... Economy
Bitcoin drops toward $60,000, Ether falls lowest this month amid broad crypto dipCryptocurrencies fell on Tuesday, with Bitcoin sliding toward the $60,000 level and Ether touching one of its lowest levels this month.Bitcoin, the ... Economy
Saudi-backed company harnesses waste energy to mine bitcoinsIn the frozen north of Canada, shipping containers housing bitcoin farms hum with activity, converting unused energy into profit.For the latest ... Gulf
Bitcoin drops about $3,000 in a flash as volatility increasesBitcoin’s wild price fluctuations continued, with the largest cryptocurrency spiking downward by about $3,000 in a matter of seconds during ... Banking & Finance
Bitcoin slips 13 pct on profit-taking but on track for biggest gain in 8 monthsBitcoin fell on Wednesday to its lowest in a week and a half, taking losses since its all-time high to over 13 percent -- though the digital currency ... Economy
Bitcoin hits new record above $65,000 after debut on Wall Street ETF futuresBitcoin hit a new record on Wednesday, surging past $65,000 after it took another step towards mainstream status as the world’s biggest cryptocurrency ... Financial Markets
Bitcoin to hit all-time high ahead of futures ETF listingBitcoin hit a six-month high and was within striking distance of its all-time peak on Tuesday as traders bet an anticipated listing of a futures-based ... Financial Markets
US biggest bitcoin miner after China crackdown: Cambridge studyThe United States has overtaken China as the biggest miner of bitcoin following Beijing’s crackdown on the method used to unearth the world’s major ... Economy