Popular cryptocurrency prices like Bitcoin price, Ethereum, and DogCoin have fallen drastically in the last 24 hours
Bitcoin Price: Wall Street and Corporate America have finally bought into Bitcoin, just in time for an ugly crash the cryptocurrency regularly experiences. Shares plunged for the third day this week as a stir in the crypto world – until recently considered a sideshow for real financial activity – blew up broader markets and linked to barely defined digital assets Shares affected.
Markets were also affected by the release of minutes of the latest meeting of the Federal Reserve, which revealed that some central bank officials are considering starting to talk about withdrawing support for the economy. There is concern that the Fed may begin to do so – partly as inflation rises – to be a major driver of volatility in stock markets recently.
The move by the central bank to raise interest rates or take other measures to cool growth is unlikely to come soon, but the willingness to discuss it was enough to trigger a setback in the financial markets. The yield on government bonds jumped and the S&P 500 – which was lower than before – fell further soon after the minutes were released.
But the stock recovered. The S&P 500 is down 0.3 percent on Wednesday, bringing its losses for the week to 1.4 percent. The yield on the 10-year Treasury note rose to 1.68 percent. The decline in the stock markets was a blurry echo of the cryptocurrency market decline in recent times.
Bitcoin was down about 8% after recovering from an even sharper drop on Wednesday. Ethereum, another cryptocurrency, was down 20 percent. The decline came after an announcement by the People’s Bank of China, which effectively prohibits Chinese financial institutions or payment companies from offering services that touch cryptocurrency.
As the world of cryptocurrency has exploded in the past year, it has had an impact on real companies and therefore financial markets. Some people on Wall Street are increasingly focused on the potential risks that could be the growth of cryptocurrency.
Analysts at JP Morgan recently noted that the market value of cryptocurrency as part of the economy is larger than the total outstanding amount of subprime real estate debt prior to the financial crisis.