ETH - Why Major Cryptocurrencies Plunged (Again) Today
2023-08-18 12:50:51 ET
Shares of major cryptocurrencies, including Bitcoin (CRYPTO: BTC) , Ethereum (CRYPTO: ETH) , and Dogecoin (CRYPTO: DOGE) , each fell between 6% and 7% overnight between Thursday afternoon and Friday morning, according to data provided by S&P Global Market Intelligence , extending yesterday's Federal Reserve-induced plunge in response to a combination of several possible negative catalysts. Bitcoin, the world's largest cryptocurrency with a market capitalization of over $505 billion as of this writing, fell as low as $25,649 -- its lowest price since early June.
One factor could be a Wall Street Journal article late yesterday detailing the finances of Elon Musk's SpaceX. The report noted Musk's privately held rocket launch and satellite operator wrote down the value of Bitcoin it owns by $373 million between 2021 and 2022, and has sold its stake in the leading cryptocurrency.
It also didn't help that heavily indebted China-based property giant Evergrande filed for Chapter 15 bankruptcy protection in a Manhattan court late yesterday. While technically not directly related to the crypto markets, the news only further spurred concerns over a potential global financial contagion if issues in China's property sector spread to other parts of the country's economy amid slowing growth.
For further details see:
Why Major Cryptocurrencies Plunged (Again) Today