The stock market has become more volatile since the price of bitcoin tumbled 20% from its previous high, as a potentially hazardous new strain of the coronavirus prompted investors to sell risk assets all around the world.[5:35 PM]
Where is the top?
It’s hard to say. Last year, bitcoin and its exchange rate were virtually unknown to most people and it was almost 250$. Now trading in this digital currency has reached $135 million a day and each coin is worth more than $1,000 on some exchanges. [2:17 AM]
As of last week, money has been pouring into bitcoin mining on a scale that dwarfs investment in the financial system.
The St. Petersburg branch of the Central Bank of Russia is warning about risks associated with investments in digital currencies, including bitcoin. The bank cites high volatility and liquidity risk as the key reasons for concern among virtual currency investors. [1:41 AM]
There are no current plans to launch “official” trading at the BTSE, but one source says it is possible in the future. At least bitcoin and litecoin should be offered as the first digital currencies at the BTSE, and further altcoins may also join. [12:26 PM]
Bitfloor, a bitcoin exchange based in New York, has been forced to close its doors. The company said that as a result of a security breach it will not resume operations and is working with law enforcement agencies to investigate the matter. [12:01 PM]
Effects of Bitcoin Crash
Bitcoin has been crashing for now. The effects of the crash are now being seen in the stock market. The bitcoin continues to fall as people are now selling their stocks so that they have money in order to buy bitcoin. The St. Petersburg branch of the Central Bank of Russia is warning about risks associated with investments in digital currencies, including bitcoin.
The bank cites high volatility and liquidity risk as the key reasons for concern among virtual currency investors. There are no current plans to launch “official” trading at the BTSE, but one source says it is possible in the future. At least bitcoin and litecoin should be offered as the first digital currencies at the BTSE, and further altcoins may also join.” A BTSE official said that the exchange will join the Moscow Stock Exchange, but this process has not yet been completed.”
