Crypto cracks as Bitcoin crashes to $30,000 before rebounding
The selloff in the cryptocurrency market continued on Wednesday as more “Bitcoiners” liquidated their positions in today’s trading session.
Following recent tweets from Elon Musk, Bitcoin saw all of its gains since January wiped out, taking BTCUSD down 31% to $30,000 this morning.
BTCUSD fell to an intraday low of $30,445, which is the lowest level the cryptocurrency has traded since January 22nd.
This was also close to the time when Tesla first announced a $1.5 billion investment in BTCUSD, sending prices to as high as $65,000.
Since then prices have consolidated, before tanking this week as Elon musk confirmed that Tesla would no longer be accepting BTC as a payment option.
The massive move to the downside was short-lived as BTC surged in the afternoon session back over $40,000 before settling down “just 10%” at $38,754.
Cryptocurrency exchange Coinbase was also down on Wednesday, with shares in the company down 5.94% to $224.80.
Wall Street Indices fall as FOMC Minutes released
The main Indices in the United States were down for a third consecutive session today, as markets awaited and then digested the latest FOMC minutes.
Wall street was submerged in red as the S&P 500, Dow Jones and NASDAQ were all trading lower as rising inflation continued to unsettle USD investors.
Tesla and Coinbase were some of today’s biggest losers, with $TSLA falling by 2.49% partially due to its involvement in the recent crash of crypto prices.
Although markets were already bearish prior to the Fed’s release, there were some slight gains once the minutes were released.
In a statement from the FOMC regarding April’s meeting, it was stated that, “A number of participants suggested that if the economy continued to make rapid progress toward the Committee’s goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases”.
The S&P 500 rose gained slighted on the news, moving up from negative 0.57% before finishing the day down 0.29%.
FTSE 100 declines on UK inflation fears
Rounding up today’s headlines was the FTSE 100 in the United Kingdom, which also closed Wednesday trading in the red.
The London based index was down 1.19% in today’s session as data released from the UK showed a sizable rise in inflation.
Data released by the Britain’s Office for National Statistics showed that the country’s consumer price index rose by 1.5% in April.
Today’s number was an increase from the 0.7% rise in March, and coincidentally was the highest CPI reading since March last year.
The rise was attributed to the UK easing lockdown measures, as such contributing to energy prices as demand for oil rose.
GBPUSD also traded lower on Wednesday, falling to an intraday low of 1.4108.
Quote of the day – “In trading/investing, it’s not about how much you make but rather how much you don’t lose.”– Bernard Baruch
Senior Market Analyst