More volatility – see below - for Bitcoin today as cryptocurrency values lurched south. US stocks continued to power forward this morning with the Dow up +0.40%. Tech and engineering stocks saw gains; Intel, IBM and Boeing all saw +2% lifts though General Electric plunged more than -4% as investors continued to price in problems over GE’s legacy insurance operations.
Goldman Sachs earlier announced its first quarterly loss for seven years thanks to tax code reform changes plus less bond trading revenues, partly due to stiffer trading regulations.
Mid-afternoon sterling had inched its way to 1.3805, up +0.08% while the euro was down -0.21% to 1.2239, not helped by new comments from an ECB member that the euro was too volatile for its own good. Against the pound the euro was -0.30% weaker at 0.8865. The dollar spot price was +0.15% higher at 90.61.
The FTSE 100 ended 30 points lower at 7,725.4 not helped by a -10% slump in Burberry shares following a less-than-confident sales picture from the fashion player's 7am trading update. There were substantial share price plunges also for Informa, down -5.8% and Pearson, slipping -4.5%. Rolls-Royce shares surged more than +5%.
- UK FTSE 100 7,725.4 -0.39%
- DAX 13,170.41 -0.55%
- CAC 40 5,496.71 -0.31%
- Euro Stoxx 600 397.80 -0.14%
- Dow 25,913.50 +0.47%
- S&P 500 2,784.26 +0.27%
- Nasdaq 7,245.63 +0.30%
- Nikkei 225 23,868.34 -0.35%
- Gold 1,336.00 -0.07%
- Oil WTI 63.68 -0.08%
Bitcoin cut to under $10,000 as regs worry mounts
Bitcoin was trading at $9,345 this afternoon, less than half its peak valuation as investors fretted over regulation risk. The bloodletting spread to Ethereum and Ripple as rumours of a Chinese and South Korean crackdown accelerated.
“If people are going to day trade cryptocurrencies, and they don't know what they are going, they're going to get slaughtered," Dan Novaes, co-founder of Current told CNBC.
Novaes claims he is ‘long’ on cryptocurrencies long term, still. E-commerce companies that allow payment in Bitcoin such as Overstock have also seen some sharp valuation share price falls. Bitcoin hasn’t sunk beneath $10,000 since the end of November – until now.