Bitcoin, ether tumble as investors take off risk amid global markets slide
The price of bitcoin dropped Thursday as investors began shedding risk amid an equity markets decline. Fears of a slowing global economic comeback caused by the potential spread of the Covid-19 delta variant appeared to be behind investors move into safer assets like Treasurys.
Bitcoin fell below $32,500 around 4:00 a.m. EST Thursday but has been climbing slowly since then. It’s currently trading at $33,000, down 4% on the day according to Coin Metrics. Most other cryptocurrency assets are falling with it, including ether, which is trading 8.7% lower at $2,150.
That backslide came around the time of reports Japan has declared a state of emergency in Tokyo for the upcoming Olympics based on a potential rebound in Covid-19 cases. Stock futures fell on the news, and companies that would benefit from an economic rebound declined in early trading. The 10-year Treasury yield also dropped to 1.25%.
Sen. Elizabeth Warren, D-Mass., warned against the growing risks the “highly opaque and volatile” cryptocurrency market poses to consumers and financial markets in a letter to Securities and Exchange Commission Chairman Gary Gensler.
Reference: CNBC
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