“Bitcoin’s sharp price drop should come as no shock to the market,” said Gavin Smith, chief executive officer of crypto consortium Panxora.
Bitcoin’s decline whacked other crypto assets, with Ether, the coin linked to the ethereum blockchain network, dropping to $1,850, its weakest level since late Janury.
Cryptocurrency price declines last week were sparked by Musk’s reversal on Tesla accepting bitcoin as payment.
The crypto asset selloff at a time when inflation fears are rising hurts the idea of the asset class as an inflation hedge.
The recent selloff in bitcoin and other digital currencies has sent market capitalisation of all cryptocurrencies to $1.7 trillion, down from the $2.5 trillion record hit earlier this month.
Elon Musk, “, ”, Gavin Smith, we’re, Eric Gaillard Shares, Ulrik Lykke, Saxo, Steen Jakobsen
REUTERS, Tesla Inc, JPMorgan
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