Bitcoin traded lower on Tuesday as prices pulled back from a double-digit percentage rally, stoked in part by Elon Musk’s effort to bolster the token’s green credentials on Twitter.
The largest digital currency slipped as much as 6.5% to $36,494 in New York, following a 16% jump on Monday. The wider Bloomberg Galaxy Crypto Index and tokens including Ether also dropped.
The Tesla Inc. CEO has roiled the token’s price this month, triggering a selloff by criticizing its energy profile and suspending Bitcoin payments. Heightened regulatory rhetoric on cryptocurrencies from China also pressured the sector.
“If the market continues to see wild swings based on Elon Musk tweets, it’s going to be a big set back for this asset class,” said Matt Maley, chief market strategist for Miller Tabak + Co. “The fact that it sees such wild swings to the tweets from one person takes away the legitimacy of the asset class.”
Mainstream Markets Shrug at Volatile $1 Trillion Crypto Rout
May 24 2021, 6:38 PM
May 24 2021, 2:02 PM
May 24 2021, 6:38 PM
(Bloomberg)
(Bloomberg)
Traditional assets are riding out the cryptocurrency storm so far, a sign that mainstream exposure to volatile digital tokens may be comparatively limited.
MSCI Inc.âs global equity gauge edged up last week even as the Bloomberg Galaxy Crypto Index endured a near 40% plunge, the worst since the onset of the pandemic last March. Treasuries and the dollar were largely steady.
âAnyone with a reasonable asset allocation would have a very small asset allocation to crypto,â Saxo Markets APAC Chief Executive Officer Adam Reynolds said in an interview with Bloomberg Television. âI donât think it should make up so much of someoneâs portfolio that these sorts of moves are going to be damaging to someoneâs own finances.â
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(Bloomberg) Wall Street strategists face an almost impossible task in trying to analyze the outlook for Bitcoin and other tokens after a volatile rout. Even so, they are still trying, and some see the risk of more trouble ahead.
At JPMorgan Chase & Co., a team led by Nikolaos Panigirtzoglou reckons it’s premature to call the end of the Bitcoin selloff. Meanwhile, in a wide-ranging report, Goldman Sachs Group Inc. signaled that extreme swings hamper crypto’s appeal for institutional investors. And Medley Global Advisors LLC warned of the threat of spillovers if Bitcoin drops well below $20,000.
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Wall Street aims to make sense of confounding bitcoin swings
The largest cryptocurrency rebounded on Monday, climbing 9% to $36 800 as of 8:42 a.m. in London.
By Joanna Ossinger, Bloomberg
24 May 2021 10:06
Image: Andrey Rudakov/Bloomberg
Wall Street strategists face an almost impossible task in trying to analyse the outlook for Bitcoin and other tokens after a volatile rout. Even so, they are still trying, and some see the risk of more trouble ahead.
At JPMorgan Chase & Co., a team led by Nikolaos Panigirtzoglou reckons itâs premature to call the end of the Bitcoin selloff. Meanwhile, in a wide-ranging report, Goldman Sachs Group Inc. signaled that extreme swings hamper cryptoâs appeal for institutional investors. And Medley Global Advisors LLC warned of the threat of spillovers if Bitcoin drops well below $20 000.