The Crypto Collapse: Here’s what’s behind bitcoin’s sudden drop
CNBC: The flagship cryptocurrency fell to more than three-month lows on Wednesday, dropping to about $30,000 at one point.
- The recent slide is a reversal from the dramatic rise that started in the second half of last year.
- Part of the reason for bitcoin’s weakness seems to be at least a temporary reversal in broader acceptance for cryptocurrency, as well as regulatory concerns and weakness in more speculative areas of financial markets.
The dramatic pullback in bitcoin and other cryptocurrencies comes as a flurry of negative headlines and catalysts, from Tesla CEO Elon Musk to a new round of regulations by the Chinese government, have hit an asset sector that has been characterized by extreme volatility since it was created.
The flagship cryptocurrency fell to more than three-month lows on Wednesday, dropping to about $30,000 at one point for a pullback of more than 30% and continuing a week of selling in the crypto space. Ether, the main coin for the Ethereum blockchain network, was also down sharply and broke below $2,000 at one point, a more than 40% drop in less tha