Bitcoin couldn’t escape the turmoil that continued to rip across global equity markets on Tuesday, with the No. 1 cryptocurrency briefly dipping below $6,000.
Bitcoin was last down close by 7% to $6,488.88 on Tuesday, according to CoinDesk, briefly falling below $6,000 for the first time since mid-November to an intraday low of $5,947.40. The cryptocurrency went into free fall late Monday on the heels of the biggest one-day, point drop in history for the Dow Jones Industrial Average.
Stocks were moving in volatile fashion so far early Tuesday, including a swing as wide as over 1,000 points in futures trading.
It wasn’t just bitcoin getting hammered. Ether, the coin on the Ethereum blockchain, slid more than 15% to $574.42, while Ripple touched 59 cents, and bitcoin cash fell to $766.03, according to CoinDesk.
The plunge in cryptocurrency prices saw the overall market cap fall to $300 billion, down from a peak of $830 billion, with the total value of bitcoin perilously close to slipping below $100 billion for the first time since November 2017.
Investors have been stepping away from assets perceived as riskier, such as bitcoin and other cryptocurrencies, in the latest global equity selloff.
The Bank for International Settlements warned Tuesday that central banks need to be ready to use “policy intervention” with regards to digital currencies. Bitcoin has become a “combination of a bubble, a Ponzi scheme and an environmental disaster,” BIS official Agustin Carstens said Tuesday.
Separately, cryptocurrency participants will be eagerly watching a Senate banking committee hearing centered on oversight of the nascent digital-asset market by the Securities and Exchange Commission and the Commodity Futures Trading Commission. The hearing is set for 10 a.m. Eastern on Tuesday.
Read more at MarketWatch.