Bitcoin suffers steepest drop in 10 days

Bitcoin Going Down

Bloodbath! Bitcoin continued its descent, suffering its steepest drop in 10 days as the market braced for short term jitters amid whispers of US Federal Reserve tapering economic stimulus.

The value of the world’s most popular cryptocurrency fell to its lowest point in over a week, as traders stare down prospects of a shifting monetary policy in the United States.

And, well, things are tight over in China as well when it comes to digital assets.

As of this writing, BTC was last seen changing hands at $32,960, representing a 9.45% drop on the day. The move marked the largest single daily loss for the bulls, the most since May 28.

Some are, of course, pointing towards the ongoing pressure from mainland China on crypto mining operations in the country and trading. Others have in view the more recent blocking of social media accounts of key opinion leaders in the Asian giant.

Jehan Chu, managing partner at Hong Kong based crypto investment firm Kenetic Capital sees this as:

“China continues to pressure crypto with rolling mining bans wiping out its most popular social media platform, Weibo, clean of crypto influencer accounts. This signals a tightening noose around crypto on the mainland.”

But there are other forces at play here, too.

Markets worldwide have been trading on shaky ground as investors fear the possibility that the Federal Reserve could begin to unwind from its liquidity boosting quantitative easing program.

Then again, there are voices like those heard in Skybridge Capital, the $7.5 billion hedge fund whose Bitcoin holdings exceed $310 million, that see the tapering of the US monetary policy unlikely to affect crypto and gold.

Both these asset classes, it is argued, possess resilience.

In any case, the long and short of it is that almost all notable cryptos are in the red right now, with the market capitalization of the top 10 coins having fallen between 7.3% to 12.9% over the previous 24 hours.

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