Bitcoin falls below $51,000
World’s leading crypto suffers 10 per cent dip
The price of Bitcoin slumped in Thursday trading, unable to sustain the momentum enjoyed in the wake of Tesla’s Wednesday announcement.
Having broken $57,000 on the news that the electric carmaker will accept it as a form of payment and not transfer it into fiat, Bitcoin fell by over 10 per cent to below $51,000. This represents both a two-week low and the crypto’s worst losing streak in over three months.
The slump followed Jerome Powell’s testimony to the Senate Banking Committee in which the Federal Reserve Chairman maintained once again his opinion that the recent rise in long-term US Treasury bond yields was not a concern but in fact an indication of growing optimism.
Powell described the recent increase in bond yields as essentially a correction “from “extraordinarily low levels…back up toward a level that we’re more likely to see,” adding:
“I would be concerned if it were not an orderly process or if conditions were to tighten to the point where they might threaten our recovery.”
Hopeful for an uninterrupted recovery as Covid-19 restrictions are gradually lifted across the country and mindful of higher interest rates, some traders and investors are thought to be transitioning away from growth investments towards more traditional opportunities.
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Thursday’s correction was by no means limited to Bitcoin, with Ethereum and Chainlink both falling by 7 per cent and XRP plunging by 10 per cent.
By mid-afternoon, Bitcoin traded at $50,920, 10.9 per cent below its Wednesday peak and more than $10,000 below the all-time high reached earlier this month.
Even with this week’s recent turbulence, however, the crypto trades 75 per cent above its 2021 starting level.
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