In a recent news, Cryptocurrency Bitcoin fell below $8000, as investors stepped away from the risk exposure to cryptocurrencies, due to selloff in shares of technology and internet companies spilled over into other high risk assets
Bitcoin is a cryptocurrency, a kind of electronic cash. It is a decentralized digital currency without a central bank or single administrator, though some researchers point at a trend towards centralization. It can be sent from user to user on the peer-to-peer bitcoin network directly, without the need for intermediaries, though intermediaries are widely used.
“It looks like the entire market is in a risk-off mood today. It started with the (FAANG) stocks, but the mood seems to be dragging down crypto markets as well at the moment,” said Mati Greenspan, senior market analyst at eToro.
The so-called FAANG group includes Facebook, Netflix, Amazon and Google parent Alphabet.
The technology index tumbled 1.79% as disappointing results last week from Facebook, Twitter and Intel spurred worries about growth for a sector that has led the equity market to record highs.
Bitcoin which is one of the world’s biggest and best known virtual currency was down 2.48% at $8 011.69 at 3:17 p.m. on Luxembourg-based Bitstamp exchange.
“The current level of support is at $7 800, but even if we see a range between $6 000 and $8 000 it would be a good sign of price stability,” stated Greenspan.
The US Securities and Exchange Commission backed an earlier decision to not allow a bitcoin-tracking exchange-traded fund proposed by Cameron and Tyler Winklevoss to trade.
Bitcoin was invented by an unknown person or group of people using the name Satoshi Nakamoto and released as open-source software in 2009, which can be exchanged for other currencies as well.
In the recent times, Bitcoin has been criticized for its use in illegal transactions, its high electricity consumption, price volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble.