Bitcoin is trading at $32,500, down about 6% on the day according to Coin Metrics. Most other cryptocurrency assets are falling with it, including ether, which is trading 9.5% lower at about $2,150.
This is because the risk in the bitcoin market is going to be at high risk because of the global pandemic. And it is very much possible that the entire world is going to do into lockdown because of the delta variant of the coronavirus that had been first found in India. This variant is said to be more contagious than the other variants of the coronavirus and it is wreaking havoc in the UK.
Bitcoin has struggled to reclaim its May highs. Its price has been hovering in the $30,000 range, down from the all-time high of $65,000 it reached in April. The main problem started when Tokyo declared a state of emergency because of the pandemic.
“We’re consolidating in here between [$30,000 and $35,000]. What we’re seeing is Asia sells it off, and then the U.S. buys it back,” Galaxy Digital CEO Mike Novogratz said Thursday on CNBC’s “Squawk Box.” “China has declared war on crypto as part of this broader cold war that we’re getting into, and so I think we’re still digesting that.”
On Tuesday, China’s central bank called for another shutdown of a company that “was suspected of providing software services for virtual currency transactions.”
“There’s a lot of ownership correlated with other assets, right? So if you’re a hedge fund and you’re getting whacked in your rate position and your equity position and your oil position, you’re probably going to sell some of your cryptos as well,” said Novogratz, a longtime crypto investor. “It just takes a while for it to build a more diverse investor base.”