Bitcoin Sinks 6% Heads to Worst Week Since March

  • "When flight to safety mode is on, it is the riskier investments that get pulled first," Denis Vinokourov of London-based cryptocurrency exchange BeQuant wrote in a note.
  • Bitcoin still holds up as one of the best financial investments in the short run of 2021, rising roughly 60% in the first two months, when it hit an all-time high of $58,354 this month.
  • Bitcoin’s price has substantially fluctuated over the years. Between November 2013 and September 2015 the price fell 78%.

The Bitcoin price fell by 6% on Friday from a two-week low, after a surge in the yields of government bonds across the world and a wave of sales of assets considered riskier. The world’s largest cryptocurrency fell to $44,451 before partially recovering, to $47,300.

Bitcoin was headed on Friday for its worst week since March as a rout in global bond markets sent yields flying and sparked a sell-off in riskier assets.

The cryptocurrency is on track for a 20% drop this week, in what would mark its biggest weekly decline since March of last year.

The sell-off replicated the move in equity markets, where European stocks fell as much as 1.5%, with demand also hit by doubts about elevated valuations.

Meanwhile, Wall Street indices show an improvement of up to 1% after Thursday’s crash, when the Nasdaq technology resigned more than 3%. Asian stocks posted their biggest setback in more than nine months.

The increase in the rate of US Treasuries not only affected record prices of stocks, but it also added extra volatility to Bitcoin

 “When flight to safety mode is on, it is the riskier investments that get pulled first,” Denis Vinokourov of London-based cryptocurrency exchange BeQuant wrote in a note.

Bitcoin still holds up as one of the best financial investments in the short run of 2021, rising roughly 60% in the first two months, when it hit an all-time high of $58,354 this month.

Coinbase to be Listed on Wall Street

Elsewhere, the US cryptocurrency trading platform Coinbase registered with the United States Securities Market Commission (SEC) the prospectus for its next IPO, which would take place on the Nasdaq Global Select Market through the direct listing mechanism and under the symbol ‘COIN ‘ for your actions.

The platform, the largest in the United States, did not offer details about the date of its stock market debut or how many shares it will place on the market and limited itself to indicating that its jump to the largest stock market in the world will take place in 2021.

Plans for Coinbase’s IPO coincide with a strong revaluation of cryptocurrencies so far in 2021

Emerging markets are bracing for an exodus of funds as a surge in Treasury yields evokes memories of the taper tantrum of 2013.

However, the company did reveal its 2020 accounts, when its revenue shot up 139%, to $1,277.7 million, with a net profit of $322.3 million, which contrasted against losses of $30.3 million in 2019.

The direct listing of shares is a less expensive mechanism than traditional IPOs, since it is characterized by the sale of existing shares held by shareholders instead of the issuance of new titles, and by which companies can list without increasing capital and without counting on the services of a bank that acts as an intermediary or subscriber of the operation, thus avoiding the roadshow and setting an initial price.

Bitcoin’s price has substantially fluctuated over the years. Between November 2013 and September 2015 the price fell 78%. Between December 2017 and January 2019 the price fell more than 80%. Even after it recovered that year, trading didn’t, a large reason why Coinbase lost money in 2019.

Vincent Ferdinand

News reporting is my thing. My view of what is happening in our world is colored by my love of history and how the past influences events taking place in the present time.  I like reading politics and writing articles. It was said by Geoffrey C. Ward, "Journalism is merely history's first draft." Everyone who writes about what is happening today is indeed, writing a small part of our history.

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