Sudden crypto drop sends bitcoin to three-week low

Representations of cryptocurrencies are seen on this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration

SINGAPORE, Aug 19 (Reuters) – Cryptocurrencies fell sharply on Friday, with sudden promoting dragging bitcoin to a three-week low.

Bitcoin fell as a lot as 7.7% to $21,404 over a couple of minutes throughout the European morning, at round 0640 GMT. It recovered barely then continued its downward trajectory to commerce round $21,400 at 1138 GMT, down 8.2% on the day.

Ether additionally dropped across the similar time and was final down 8.8% at $1,685.

The explanation for the drop was not clear.

“It’s not displaying the sample of a flash crash, because the property didn’t instantly rebound sharply however sank even decrease within the hours that adopted,” mentioned Susannah Streeter, senior funding and markets analyst at Hargreaves Lansdown.

“It appears probably that this was on account of a big sale transaction.”

Streeter mentioned it appeared the cryptocurrency cardano had been the primary to maneuver, adopted by bitcoin and ether, after which others such because the altcoin dogecoin.

Cryptocurrencies have fallen dramatically up to now this 12 months, as Federal Reserve fee hikes and ultra-high inflation immediate buyers to ditch riskier property.

Craig Erlam, senior market analyst at Oanda, mentioned bitcoin’s failure to get well its losses “suggests there’s substance to the transfer”.

Such sharp strikes are widespread within the extremely risky cryptocurrency market. On June 15, bitcoin plunged greater than 15% as buyers had been spooked by the collapse of a so-called stablecoin, TerraUSD, and a significant crypto lender freezing buyer withdrawals. learn extra

Friday’s transfer put bitcoin on observe for its worst day for the reason that June meltdown.

“Speculating in cryptocurrencies is extraordinarily excessive danger and isn’t appropriate for the overwhelming majority of individuals,” Hargreaves Lansdown’s Streeter mentioned.

Reporting by Tom Westbrook; Enhancing by Toby Chopra, Kirsten Donovan

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