Bitcoin and other cryptocurrencies plummeted on Friday, evaporating more than $260 billion in the global market value of cryptocurrencies in 24 hours.
As of about 14:06 p.m. Beijing time on Friday, bitcoin prices have fallen nearly 10% in the past 24 hours to $49281.40, according to coindesk. Ethereum fell more than 11 per cent to $2202.05. XRP, the fifth largest cryptocurrency, fell more than 22%, according to coinmarketcap.
Vijay ayyar, head of business development at the cryptocurrency exchange luno, said: “the market as a whole has gone up a lot and may cool down before the next round.”
U.S. stocks fell on Thursday after reports that U.S. President Joe Biden is considering nearly doubling the capital gains tax.
“There has also been a wider decline in the stock market, which could affect all risky assets,” ayyar said
So far this year, the price of bitcoin has risen by about 70% and that of Ethereum by about 200%.
However, concerns about regulators’ crackdown on bitcoin continue to haunt the market. Jesse Powell, chief executive of Kraken, a large cryptocurrency exchange, warned that governments might restrict the use of bitcoin and other cryptocurrencies.
It was reported last month that India was planning to introduce a law that would prohibit the trading of cryptocurrency or even the possession of cryptocurrency. In February, U.S. Treasury Secretary Yellen called bitcoin “a highly speculative asset” and said she was worried that investors might suffer losses.