Bitcoin falls 19% to face biggest one-day drop since March

Platform News: Bitcoin cryptocurrency

Bitcoin dropped more than 19% to a one-week low on Monday, putting the cryptocurrency on course for its greatest one-way drop as March as its recent red-hot rally hit the buffers.

Bitcoin slumped to $30,699, its lowest since January the 5th, after expanding earlier losses in Asian trading hours and was last down 15% at $32,675.

If continued, the one-day fall are the biggest since COVID-19 caused chaos in financial markets in March.

The falls reflect a wider dollar rebound against leading fiat currencies as the possibility of higher US interest rates tempers popular bets against the dollar.

Second-biggest cryptocurrency ethereum which frequently ends in tandem with bitcoin, dropped as much as 23 percent to a low of $985.

Interest in bitcoin was soaring since institutional investors began buying heavily, viewing it as both an inflation hedge and as exposed to gains if it became widely adopted.

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BofA said last week that the planet’s favourite cryptocurrency “blows the doors off prior bubbles”, like the dotcom boom, China in the 2000s and gold in the 1970s.

JPMorgan strategists, however, said that bitcoin has emerged as a rival to gold and may trade as high as $146,000 if it becomes recognized as a safe-haven asset.

The team at Platform Executive hope you have enjoyed this news article. Translation from English to other languages via Google Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Tom Westbrook. Editing by Himani Sarkar, Lincoln Feast and Alexander Smith.

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