Bitcoin crashes below $60k, wiping out all gains since Trump's election
Oh, the sweet smell of digital gold melting in the morning. Remember when the orange-haired savior of crypto was supposed to send everyone to the moon? Well, the rocket just ran out of fuel, and the "have fun staying poor" crowd has gone completely silent.
During Friday trading in New York, the largest cryptocurrency Bitcoin plummeted by 7%, hitting a low of $59,101.
This spectacular slide officially erased the entire premium built up since the US presidential election. It turns out that laser eyes and Twitter memes aren't quite enough to fight economic gravity forever.
The digital coin has now lost more than half of its value since its peak euphoria in October, when it reached an all-time high of over $126,000. This downward spiral is dragging the rest of the crypto sandbox down with it, with Ethereum dropping over 10%, while Solana, XRP, and Dogecoin fell past 5%.
Even the ultimate diamond-hands champion, Michael Saylor, decided that holding onto virtual coins forever is a great strategy right until it isn't, as his company MicroStrategy started dumping some of its massive stash.
Net outflows from exchange-traded funds and rising geopolitical jitters have caused retail investors to flee. This massive institutional sell-off culminated in the liquidation of millions of dollars in leveraged long positions across major derivative exchanges.
The grand promises of a state-backed strategic reserve and hyperinflation-proof digital gold have once again crashed into the cold wall of reality. It seems the only thing "to the moon" about this cycle was the speed of the descent, leaving a trail of broken dreams and heavily depreciated JPEG collections in its wake.
Source: Bloomberg
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