News Crypto Takes a Rough Ride With Equity Markets

Crypto Takes a Rough Ride With Equity Markets

-

- Advertisment -

It was another rough day for the stock market, and bitcoin and other major cryptocurrencies suffered similarly.

Bitcoin, at $6,292, was down nearly 4.5 percent in Thursday afternoon trading. Ether, eos, bitcoin cash  and ripple were off more than 10 percent. Litecoin was down by nearly that much.

The drop dovetailed with an equities selloff that was the largest since February. The Dow Jones Industrial Average followed an 800-point drop on Wednesday by shedding an additional 546 points, or about 2 percent.

Will this current drop be enough to force bitcoin below $6,000?

The massive declines came amidst growing concerns about rising borrowing rates, inflation, tariffs and the escalating trade war with China, although a report that prices rose less than expected in September and news that President Trump could be meeting with Chinese President Xi Jinping briefly rallied markets.

Crypto’s tumble followed by two days cautionary remarks by the International Monetary Fund in its annual World Economic Outlook that increased use of digital currencies could create economic “vulnerabilities.” The report said the “continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.”

Some crypto observers and analysts said investors were wary of what research firm Oanda analyst Craig Erlam referred to as “exotic instruments” in a MarketWatch article.  

Specifically, bitcoin is not “displaying the qualities one would expect of gold 2.0, as it has been touted as by some cryptocurrency enthusiasts,” Erlam wrote.

“This truly is a widespread selloff and anything perceived as a risky asset has been in the firing line,” he added. “What will be interesting is whether this will be enough to force bitcoin below $6,000, which has proven to be something of a floor for the crypto on numerous occasions this year.”

In a tweet, Peter Schiff, CEO of Euro Pacific Capital and an advocate of gold investing, took the opportunity to highlight bitcoin’s volatility.

“Actual #gold is up 2.5% today and is trading like a safe haven,” Schiff wrote. “#Bitcoin, digital fool’s gold, is down 4.5 [percent] today and is trading like a risk asset. If you own bitcoin because you think its a store of value you are mistaken.  You should sell your bitcoin and buy gold!”

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...

How to double your crypto

Most of us have a small gambler deep inside our souls. We love to feel the thrill...
- Advertisement -Crypto Takes a Rough Ride With Equity Markets

Cryptocurrency Top Security Risk Concerns: What You Can Do to Protect Your Crypto

A report by CipherTrace revealed that in the first half of 2019, criminals and fraudsters stole more...

How has Bitcoin of America Changed the Cryptocurrency Industry?

Who is Bitcoin of America? Bitcoin of America is a U.S. based digital currency...

Must read

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came...

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when...
- Advertisement -Crypto Takes a Rough Ride With Equity MarketsCrypto Takes a Rough Ride With Equity Markets

You might also likeRELATED
Recommended to you