Cryptocurrency related stocks led by Tesla and Coinbase dropped on Wednesday as bitcoin plunged the equivalent of a bear market in just a single day.
Bitcoin at its low point of the day was down more than 30% on the session to $30,001.51, its lowest since late January, according to Coin Metrics. The price was last down 21% to $33,993.78 as of 9:28 am ET. The cryptocurrency has been cut in half since hitting an all-time high above $64,000 in mid-April.
The move comes after China on Tuesday barred financial institutions from conducting crypto-related transactions. Separately, a JPMorgan report showed large institutional investors were dumping bitcoin in favor of gold.
The pullback this month in bitcoin intensified a week ago after Tesla CEO Elon Musk appeared to change his tune a bit on crypto by saying the company would stop accepting bitcoin for payment because of environmental concerns surrounding crypto-mining.
"You had a confluence of events...where you started breaking down the positivity in the price action, and now we've got a liquidation event," Galaxy Digital CEO and Chairman Mike Novogratz told CNBC's "Squawk Box." "It's not going to bounce right back. It'll consolidate for a while."
Crypto-related stocks drop amid bitcoin's slide
Tesla, still a large holder of bitcoin, fell 4% Wednesday morning after markets opened. Microstrategy, which made headlines by buying a significant amount of bitcoin for its corporate treasury, tanked by 11%.
Coinbase, the newly public crypto exchange, dropped 9% after trading began. The website appeared to be down for some users Wednesday morning.
Bitcoin's price approached $65,000 five weeks ago before peaking, around the time of Coinbase's public debut.
"Coinbase's trading debut coincides with the top for Bitcoin and many traders can't make a convincing argument that it will be able to recover all those losses since then," said Edward Moya, senior market analyst at OANDA.
Square and PayPal — which facilitate transactions in cryptocurrencies and have been big buyers — were also lower 4.3% and 1.5% respectively, Wednesday morning.
Nvidia ticked down 3% after trading began. The company manufactures chips used in crypto-mining, but reportedly trying to curb their use for that purpose.
Grayscale Bitcoin Trust, the popular trust holding a large amount of bitcoin, sunk nearly 15% Wednesday morning.
Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now
— CNBC's Michael Bloom contributed reporting.
https://ift.tt/2QAGQFo
Business
Bagikan Berita Ini
0 Response to "Tesla, Coinbase lead drop in crypto-related stocks as bitcoin plunges - CNBC"
Post a Comment