Bitcoin, the largest cryptocurrency by market capitalization, is falling. According to Coinbase, as of 1:00 p.m. Eastern Time on the 5th, Bitcoin was down 8% over the past 24 hours at $66,060, the lowest level in 15 months. In Korea, Upbit showed Bitcoin trading at around 93 million won, down 13.8% in the past 24 hours.
The move is seen as erasing gains from a Trump rally that had supported cryptocurrency prices. That implies the gains since Donald Trump’s presidential win, viewed as crypto-friendly, have been given back. Market participants worry the sell-off could spill over into the broader financial markets. Altcoins have also declined as the sell-off broadens.
Michael Burry warned that Bitcoin’s decline could trigger a ‘death spiral’ that would hurt corporate earnings. He warned that if Bitcoin falls another 10%, large holders could face tens of billions of dollars in losses, describing the scenarios as ‘sickening’ and noting that the market has shown digital assets to be largely speculative. Investors will continue monitoring for spillovers into broader markets, as the crypto space remains highly volatile and largely speculative.
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