SpaceX founder and Tesla CEO Elon Musk looks on as he visits the construction site of Tesla’s gigafactory in Gruenheide, near Berlin, Germany, May 17, 2021.
Michele Tantussi | Reuters
Bitcoin, the world’s largest digital token, fell to nearly $30,000 at one point Wednesday morning, according to Coin Metrics. The price was down roughly 24%. (Any drop greater than 20% in an asset or security is considered a bear market.)
The move comes after China on Tuesday barred financial institutions from conducting crypto-related transactions. Separately, a JPMorgan report showed large institutional investors were dumping bitcoin in favor of gold.
The pullback this month in bitcoin intensified a week ago after Tesla CEO Elon Musk appeared to change his tune a bit on crypto by saying the company would stop accepting bitcoin for payment because of environmental concerns surrounding crypto-mining.
“You had a confluence of events…where you started breaking down the positivity in the price action, and now we’ve got a liquidation event,” Galaxy Digital CEO and Chairman Mike Novogratz told CNBC’s “Squawk Box.” “It’s not going to bounce right back. It’ll consolidate for a while.”
Tesla, still a large holder of bitcoin, fell roughly 4% Wednesday morning. Microstrategy, which made headlines by buying a significant amount of bitcoin for its corporate treasury, tanked by 10%.
Coinbase, the newly public crypto exchange, dropped nearly 9%. Bitcoin’s price approached $65,000 five weeks ago before peaking, around the time of Coinbase’s public debut.
Nvidia ticked down 2% after trading began. The company manufactures chips used in crypto-mining, but reportedly trying to curb their use for that purpose.
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