May 17, 2022

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Bitcoin Slides Below $37,000 As Investors Ditch Risky Bets

Bitcoin Slides Below $37,000 As Investors Ditch Risky Bets

Cryptocurrency prices fell on Thursday afternoon along with major stock market indices.

Bitcoin fell to $36,431.57 at 5 PM ET, down 8.4% from Wednesday, according to Dow Jones market data. Ethereum shares fell 6.4% to $2,754.37.

Among the top 30 cryptocurrencies listed on CoinDesk, 29 fell on the day.

Aside from the short selling in January, the price of bitcoin hasn’t been this low since last July, when it traded as low as $29,000. The largest cryptocurrency is now down about 47% from its November high of $68,991.

The central bank announced on Wednesday Half point rate increase. Federal Reserve Chairman Jerome Powell said there may be half a point rate increases in the summer months, but officials are not considering a three-quarter percentage point increase.

That sent stocks higher on Wednesday, but they gave up those gains on Thursday, with the Nasdaq Composite down 5%.

over the past two years, More professional traders have found their way into the cryptocurrency markets. The effect of this was that crypto assets traded more in line with other risk assets, such as growth and technology stocks.

The tech-heavy Nasdaq Composite is down more than 21% this year, while Bitcoin is also down 21%. Thursday’s selloff comes on top of what was bad in April for cryptocurrency prices as well. Bitcoin’s market capitalization is down 17% to $716 billion, according to research firm CryptoCompare.

WSJ’s Dion Rabouin explains why Wall Street is now betting so heavily on cryptocurrencies and what this means for the new asset class and its future. Composite photo: Elizabeth Smiloff

With Thursday’s sell-off, the total market capitalization of bitcoin has fallen to around $690 billion, according to CoinDesk.

The dismantling of risky assets on a large scale has affected the cryptocurrency market in particular, Pay everything from bitcoin to NFTs. It’s also starting to influence companies in the industry. Cryptocurrency companies experienced a boom early in the year, culminating when many of them paid out millions of dollars To play ads during the Super Bowl. But the momentum has faded sharply since then.

to

Coinbase Global company ,

One Super Bowl advertiser, desktop and mobile web traffic fell 26% in the first quarter of the previous year, according to web analytics firm Likeweb Ltd. Audience gone.

Analysts expect Coinbase’s first-quarter profit to be $0.00, according to FactSet, down from $3.05 last year. The company reports earnings on Tuesday.

Write to Paul Vigna at [email protected]

Copyright © 2022 Dow Jones & Company, Inc. all rights are save. 87990cbe856818d5eddac44c7b1cdeb8

It appeared in the May 6, 2022, print edition as “The Fall of Bitcoin and Other Digital Money”.

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