Bitcoin Extends Slide, Heads for Worst Week Since March 2020

Bitcoin fell more than five percent to an almost three-week low in the Asia session.

Share on Facebook Tweet Snapchat Share Reddit Comment
Bitcoin Extends Slide, Heads for Worst Week Since March 2020

Janet Yellen expressed concerns that cryptocurrencies could be used to finance illegal activities

Highlights
  • Bitcoin remains less regulated than most traditional assets
  • Few people or businesses use Bitcoin for commerce
  • Second-biggest cryptocurrency ethereum also dropped to a one-week low

Bitcoin fell heavily on Friday and was heading toward its sharpest weekly drop since last March, as worries over its technology and regulation extended a pullback from recent record highs.

The world's most popular cryptocurrency fell more than 5 percent to an almost three-week low of $28,800 (roughly Rs. 21 lakhs) in the Asia session, before steadying around $30,000 (roughly Rs. 21.8 crores). It has lost 15 percent so far this week, the biggest drop since a 33 percent fall in March.

Traders said a report posted to Twitter by BitMEX Research, suggesting that part of a Bitcoin may have been spent twice, had hurt confidence in the technology underlying the asset class and also that a pullback was overdue after a huge rally.

"You wouldn't want to rationalise too much into a market that's as inefficient and immature as Bitcoin, but certainly there's a reversal in momentum," said Kyle Rodda, an analyst at IG Markets in Melbourne, in the wake of the BitMEX report. "The herd has probably looked at this and thought it sounded scary and shocking and it's now the time to sell."

Bitcoin is now around 30 percent below the record high of $42,000 (roughly Rs. 30.6 lakhs) it hit two weeks ago, losing ground amid growing concerns that it is one of a number of financial market price bubbles and as cryptocurrencies catch regulators' attention.

During a US Senate hearing on Tuesday, Janet Yellen, President Joe Biden's pick to head the US Treasury, expressed concerns that cryptocurrencies could be used to finance illegal activities.

That followed a call last week from European Central Bank President Christine Lagarde for global regulation of bitcoin.

Still, some said the pullback comes with the territory for an asset that is some 700 percent above the 2020 low of $3,850 (roughly Rs. 2.8 lakhs) hit in March.

"It's a highly volatile piece," said Michael McCarthy, strategist at brokerage CMC Markets in Sydney. "It made extraordinary gains and it's doing what bitcoin does and swinging around."

Second-biggest cryptocurrency ethereum also dropped to a one-week low, of $1,041.22 (roughly Rs. 75,950), before recovering to steady around $1,144 (roughly Rs. 83,450).

© Thomson Reuters 2021


Does WhatsApp's new privacy policy spell the end for your privacy? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Cryptocurrency Prices across Indian exchanges

Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Bitcoin
Alphabet Shutting Down Loon, Its Balloon-Based Internet Alternative to Cell Towers

Related Stories

 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2021. All rights reserved.
Listen to the latest songs, only on JioSaavn.com