Bitcoin record biggest plunge since February, Ether also plummets
19/04/2021
NEW DELHI, apr 18: Bitcoin plunged the most in more than seven weeks, just days after reaching a record.
The biggest crypto coin fell 8.5% to $55,810.32 as of 2:52 p.m. in Singapore on Sunday, after declining as much as 15.1% to $51,707.51. Ether, the second-largest token, fell almost 18% before paring losses. Several online reports attributed the plunge to speculation the US Treasury may crack down on money laundering that’s carried out through digital assets.
Bitcoin hit a record high of $64,869.78 last week ahead of the debut trade for the cryptocurrency exchange Coinbase Global Inc. on the Nasdaq Wednesday. The original crypto coin, Bitcoin is valued at more than $1 trillion after a more than 800% surge in the past year. Growing mainstream acceptance of cryptocurrencies has spurred Bitcoin’s rally, as well as lifted other tokens to record highs. Interest in crypto went on the rise again after companies from PayPal to Square started enabling transactions in Bitcoin on their systems, and Wall Street firms like Morgan Stanley began providing access to the tokens to some of the wealthiest clients.
That’s despite lingering concerns over their volatility and usefulness as a method of payment. Dogecoin, a token created as a joke and which has been boosted by the likes of Elon Musk and Mark Cuban, rallied more than 110% Friday before dropping the next day. Demand was so brisk for the token that investors trying to trade it on Robinhood crashed the site, the online exchange said in a blog post Friday. Governments are inspecting risks around the sector more closely as the investor base widens. Federal Reserve Chairman Jerome Powell last week said Bitcoin “is a little bit like gold” in that it’s more a vehicle for speculation than making payments.
European Central Bank President Christine Lagarde in January took aim at Bitcoin’s role in facilitating criminal activity, saying the cryptocurrency has been enabling “funny business.”
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