Wait a lifetime! Whiplashed Bitcoin is scratching back some gains, rising 12% after falling overnight to levels that marked a 52% decline from its record high
- Bitcoin falls 52% below its record high of $ 64,829 in mid-April
- In volatile weekend trading, Ethereum also slipped as the crypto router continued
Bitcoin rebounded somewhat overnight after falling to half of its record high over the weekend.
By late morning trading in New York, the cryptocurrency had gained around 12 percent in the past 24 hours.
That gain comes from a wild ride in which the cryptocurrency sent investors on – after falling to $ 31,180 on Sunday night – up 52 percent from $ 64,829 on April 16, according to Coindesk data.
After beating strong overnight from that trading low, Bitcoin rose back to $ 37,673 just after 10 a.m. Eastern Time in New York.
With cryptocurrencies being traded all the time, weekends often prove to be very volatile, and Bitcoin investors had set themselves on a rocky ride after prices continued last week from mid-May.
Bitcoin has been down sharply since mid-May, bringing the price below 50% of its April high
Ethereum, considered by many to be the next most important cryptocurrency, fell to $ 1,734 yesterday and had rebounded to $ 2,291 this morning. It’s also well below its all-time high of $ 4,383, according to Coindesk.
The tailwind that pushed Bitcoin to its record high in mid-April has turned into headwind in recent weeks, and Tesla founder Elon Musk has mistaken the markets for his tweets.
Musk bought $ 1.5 billion bitcoin for his company and said it would be paid for cars before later announcing that Tesla would no longer accept the cryptocurrency and cite environmental concerns.
The Chinese authorities also announced that tighter regulation of cryptocurrency would be required late last week, and followed suit against Bitcoin and other crypto mining.
When asked over the weekend about the trouble he was creating with his Bitcoin posts, Musk responded to a tweet by saying, “The real battle is between Fiat and Crypto. All in all, I support the latter. “
Bitcoin’s high volatility isn’t news to long-term crypto investors, but there are concerns that the rapid slump may have hit newer owners hard after hitting a series of new highs
Bitcoin and crypto investors are used to volatility, but the rapid 50 percent decline from April’s high has surprised many, and there are concerns that those who have been investing lately due to the rapid rise in prices since late last year are concerned could have lost substantial sums of money.
Bitcoin and cryptocurrency are very volatile, and in financial planning, it is recommended that such a risky asset should not constitute more than a small percentage of a diversified portfolio.
Jeffrey Halley, Senior Asia Pacific Market Analyst at OANDA, said, “The circus we know as virtual currency continues to hit the headlines. Elon Musk tweeted that he still believes in cryptos, a practical mindset to have when you have $ 1.5 billion of it at these levels, with pesky people known as shareholders to respond to.
“However, China has shown again who the big fish is and thus signaled action against crypto miners.
“While I’m not sure we saw the end of Peak-Musk, we had another roller coaster trading weekend that saw Bitcoin drop from $ 38,000.00 to $ 31,000.00 before breaking up this morning $ 35,600.00 rebounded.
I repeat once again that the state / regulatory risk is now an existential threat to the virtual currency area. With a clean break of $ 30,000.00, another surrender trade should take place and I can’t see the loss of digital wealth not spilling over to other asset classes, at least temporarily. “
Bitcoin price is almost double what it was 19 months ago at $ 19,046 and four times what it was a year ago at $ 9,193.
Widely considered the second most important cryptocurrency, Ethereum also fell sharply, falling to $ 2,000 after recently peaking above $ 4,000
Inflation, Moonshot Investing, and Bitcoin True Believers
Inflation is bad news for the pound in your pocket and for savers, but wasn’t it the whole point of all the money pressures and interest rate cut to get a stronger rebound?
In this podcast, Georgie Frost, George Nixon, and Simon Lambert explore why inflation has become a hot topic, how it affects savers and investors, and what it could mean for Moonshot investing and Bitcoin.
You through the implications for savers who now can’t find an account that outperforms inflation but explain a trick to get a better interest rate through ladders.
And Simon discusses what inflation could mean for investors and why tomorrow’s growth stocks that have delivered in the past decade may not hold for the next decade.
Hit “Play” above or listen (and subscribe if you like the podcast) on Apple Podcasts, Acast, Spotify and Audioboom or visit our “This is Money Podcast” page