Bitcoin Loses Nearly $ 200 Billion as JPMorgan warns ‘Least Reliable’ Dollar Hedge


The price of bitcoin tanked nearly 10% on Thursday, tackling huge losses as bearish calls from regulators and analysts escalated after a massive surge triggered by still-booming institutional adoption.

Key Facts

As of 12 pm EST, bitcoin’s 24-hour dive has pushed prices down to its lowest levels in more than two weeks, wiping out about $ 180 billion in market value since its highest ever level on January 8, according to crypto data company CoinMarketCap .

Most other top tickets also plummet, with ether, XRP and Cardano down 7%, 3.5% and 3%, respectively.

The ongoing losses come as the adoption of bitcoin’s growing mainstream “raises correlation with recurring assets, possibly converting cryptocurrencies from insurance to leverage,” JPMorgan analysts said in a note to clients reported by Bloomberg Thursday.

Analysts went on to say that bitcoin is the “least trusted hedge during times of acute market stress,” an observation that differs significantly from Wall Street experts saying investors have been flocking to the world’s largest cryptocurrency as “a legitimate hedge against inflation.”

Meanwhile, President Joe Biden’s Treasury Secretary nominee Janet Yellen, who may be overseeing crypto-critical centers like the Financial Crimes Enforcement Network and Internal Revenue Service, called cryptocurrencies a “special concern” this day March, suggesting that legislators are taking action to “curtail their use,” in particular to ensure that they are not used for illegal financing.

That’s not stopping institutional players from plunging further into space: Investment giant BlackRock filed documents with the Securities and Exchange Commission on Wednesday to include the future of cash-settled Bitcoin as eligible investments for two of its funds.

Essential Quote

“Bitcoin shows some vulnerability at the end of such a strong month: It saw some pressure at $ 34,000 on Wednesday and has since buckled, making a run at $ 30,000 very likely,” noted Craig Erlam, Senior Market Analyst Oanda, Thursday morning. “This level looks very fragile and a break under it is bad news in the near term for bitcoin and cryptocurrencies in general,” he added, before saying that it would be less surprising if prices plummeted to $ 20,000 before they break new highlights.

Big Number

$ 926 billion. That’s the current market value of all cryptocurrencies, according to CoinMarketCap. That’s down nearly $ 200 billion following a record high of $ 1.1 trillion earlier this month, with bitcoin fueling almost all losses.

What to watch out for

Yellen is not the only Biden nominee with a critical eye on crypto. Gary Gensler, the president’s nominee to head the SEC, is a former banker who said in 2018 that cryptocurrencies including ether and XRP are similar to securities. In December, the SEC accused Ripple Labs (the company behind XRP, the world’s third largest ticket at the time) and two of its executives for conducting an unauthorized securities offering. In its complaint, the SEC claimed that XRP was a security and therefore subject to the agency’s regulatory clarification. XRP prices are down more than 60% since then. Meanwhile, the SEC director declared in 2018 that ether was not a security, but he did not make that statement permanently.

Further reading

Bitcoin’s $ 100 billion sharp Sale drags down the price of all major cryptos – except one (Forbes)

BlackRock Files To Add Bitcoin Future To Funds (Forbes)

Ether Market Value Gets $ 20 Billion in One Day While Bitcoin Prices Slow – Here’s Why (Forbes)

Crypto Market Eliminates $ 200 Billion in 24 Hour Market Value; Regulator warns investors could ‘lose all money’ (Forbes)