Bitcoin Plummets Below $30,000 As Crypto Market Crashes Amid Delta Variant Spread

top line

Bitcoin plunged below $30,000 on Tuesday morning, losing nearly all of its 2021 gains as $100 billion was wiped out of the crypto market, reflecting sharp declines in global markets amid concerns that the rapidly spreading delta variant of Covid-19 may hinder economic recovery.

key facts

Bitcoin is down nearly 6% on Tuesday to just over $29,600 for the token, just over the $29,022 that started in 2021 and less than half of its all-time high of more than $64,000 in the middle of the year. April.

Other major cryptocurrencies are also down, with Ethereum down 7%, Cardano 10%, Ripple’s XRP 8%, and Dogecoin 9%.

While the exact reason for the drop is unclear, the cryptocurrency market is reflecting a sharp decline in markets around the world — including the Dow Jones Industrial Average which posted its biggest one-day drop since October — as experts fear renewed restrictions and a slower recovery due to the variable Delta Covid. -19 infectious.

The regulatory action against BlockFi, a bitcoin financial services platform, by the New Jersey attorney general’s office on Monday night has raised concerns of a broader regulatory crackdown, which has previously led to selloffs.

main background

The infectious delta variant is driving new waves of Covid-19 around the world, including highly vaccinated countries that have already managed to control the virus. The alternative, which is resistant to vaccines and may be able to cause more serious disease, is also driving an increase in new cases in the United States and many regions — including parts of Europe, Israel and Australia — reimposing restrictions and lockdowns to contain the outbreak. Some regions, notably the UK, are just preparing to “live with the virus” and England has virtually dropped all pandemic restrictions. While many scientists have described this strategy as dangerous and have ignored the threat of Long Covid, companies have lamented the burden of a contact tracing system pushing people into self-isolation combined with such a high case rate (the UK has the highest rate in the world) , leaving them short of workers. As the path to recovery becomes less clear, markets are reflecting this and being less optimistic.

in-depth reading

Global markets were shaken by fears of variable delta (FT)

New Jersey Attorney General issues cease and desist order against multi-billion dollar bitcoin financial services platform (Forbes)

Stock market sell-off: Dow drops 700 points in worst drop since October as delta alternate fears escalate (Forbes)

.