Bitcoin tumbles to lowest since February as meltdown further accelerates

Photographer: Chris Ratcliffe/Bloomberg

Bitcoin tumbled to its lowest level since February as the meltdown in the world’s largest digital currency accelerated, renewing concern about the long-term viability of the much hyped alternative to traditional currencies.

The price of the digital coin fell as much as 4.6 percent Tuesday to $6,450.01, bringing the slide for the year to more than 50 percent. It’s down from a record high of $19,511 reached in December, the culmination of the more than 1,400 percent surge seen in 2017 as Bitcoin burst on to the mainstream.

“I don’t think this is driven on any particular news, just the general downtrend after the 2017 run,” Kyle Samani, managing partner at Austin, Texas-based crypto hedge fund Multicoin Capital, said in an email. “A lot of people who bought at $9,000 in April are realizing that they’re not going to break even anytime soon, and are instead trying to get out.”

Cryptocurrencies have been beset by a string of bad news. Most recently was the “cyber intrusion” on the South Korean cryptocurrency exchange Coinrail this past weekend that appeared to result in a loss of an unknown quantity of digital currency. Bitcoin slumped 12 percent on Monday.

Exchanges have come under growing scrutiny around the world in recent months amid a range of issues including thefts, market manipulation and money laundering. Back in May, the sector found itself under increasing government scrutiny when the Justice Department opened up a criminal probe into illegal trading practices that can manipulate the price of Bitcoin and other cryptocurrencies.

“The relative size of this user group raises questions,” Susan Eustis, president of WinterGreen Research Inc., said in an email. “As cryptocurrency venues have come under growing scrutiny around the world in recent months amid a range of issues including thefts, market manipulation and money laundering, the base of the Bitcoin appeal has eroded.”

Skeptics have remained vocal. Bitcoin got no love from two of the world’s wealthiest men, Bill Gates and Warren Buffett, with the latter calling the currency “probably rat poison squared” last month.

In China, the Communist Party-run People’s Daily reported on June 7 that the country will continue to crack down on illegal fundraising and risks linked to Internet finance, quoting central bank officials. The nation’s cleanup of initial coin offerings and Bitcoin exchanges has almost been completed, the newspaper said, citing Sun Hui, an official at the Shanghai branch of the central bank.

Also Read:

India: RBI studies feasibility of digital currencies amid crypto crackdown

Bitcoin drops below $7,000 as dismal quarter comes to an end

Bloomberg

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.