Bitcoin crashes 15% as global regulators hesitate to greenlight crypto for commercial use

Just days after reaching another record high, bitcoin, the world’s number one digital currency, saw a dramatic plunge of more than 15% – the biggest drop in more than seven weeks.

The token fell by 9.72% to $56,074 as of 7am GMT, after having dropped by as much as 15.1% to $51,707.51 earlier. Other digital assets are also trading in the red. Ether, the second-largest cryptocurrency, fell more than 10% to $2,216. Ripple dropped to $1.35, losing about 20%.

Also on
FILE PHOTO: People watch as the logo for Coinbase is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York, US, on April 14, 2021
Coinbase IPO ‘monumental’ for crypto industry but has fueled kind of frenzy that ‘never ends well’ – investor Mike Novogratz

Last week, bitcoin hit a record high of $64,870 ahead of the debut trade for the cryptocurrency exchange Coinbase Global on the Nasdaq. Market capitalization of the world’s most valued cryptocurrency topped $1 trillion after a surge of more than 800% in the past year.

Bitcoin extended its 4% loss recorded earlier this week shortly after Turkey’s central bank banned the use of cryptocurrencies and crypto assets for buying goods and services. According to the regulator, the use of digital currencies would cause “irreparable” damage and transaction risks.

Also on
Turkey bans use of cryptocurrencies for payments, citing possible ‘irreparable’ damages

The latest crash may reportedly be attributed to speculation that the US Treasury is planning to crack down on money-laundering practices carried out via digital assets, among other factors.

For more stories on economy & finance visit RT's business section

Post a Comment