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Bitcoin plummets 19%; faces its biggest daily fall since March

The decline reflects a broad rebound in the dollar against a basket of featured currencies, while the prospect of higher interest rates tempers bets against the green ticket.

 

Bitcoin sank by more than 19% on Monday, to a minimum of more than a week, putting the cryptocurrency on its way to its biggest daily collapse since March following recent strong advances.

In its last price, bitcoin ceded 15%, to $32,675, having touched $30,699 earlier, its smallest amount since January 5. If maintained, the collapse would be the biggest since covid-19 brought chaos to financial markets in March.

The decline reflects a broad rebound in the dollar against a basket of six prominent currencies, while the higher interest rate outlook tempers bets against the green ticket.

The second largest cryptocurrency, ethereum,which usually moves in tandem with bitcoin,lost 23%, touching a minimum of one week of $985.

Interest in bitcoin has been rising from strong purchases by institutional investors, who see it as inflation hedging and more exposed to profits if adopted more widely.

The most cryptocurrency doubled its price from early December to a record $42,000 last Friday, which led some investment banks to warn of an imminent bubble.

BofA said last week that the world's most popular cryptocurrency could minimize past bubbles, such as the rise of the 'dot com' of the late 1990s, China in the 2000s and gold in the 1970s.

However, JPMorgan strategists claimed that bitcoin has emerged as a rival to gold and could reach $146,000 if it stabilizes as a refuge asset.

 

 
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