LONDON : Prices of cryptocurrencies plunged on Monday as concerns over the spillover risk to the global economy from Chinese property group Evergrande's troubles rippled over to wider markets.
Bitcoin, the world's biggest and best-known cryptocurrency, tumbled more than 8per cent to US$42,453, its lowest level since Aug. 7 before trimming some losses to trade down 7per cent. It hit a near four-month high above US$52,000 on Sept. 6. Smaller rival Ether, the coin linked to the Ethereum blockchain network, fell more than 10per cent below US$3,000 for the first time since early August.
The loss in the value of cryptocurrencies comes at a time when institutional interest in the space has surged and some investment banks have ramped up their forecasts for cryptocurrencies in the coming months. "Their fate seems a little tied to equities at the moment, and the price action is incredibly similar too," said John Marley, CEO of forexxtra, a London-based FX consultancy.
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Analysis: Why the Fed might welcome a bond market tantrumA bond market tantrum that drives up yields can be a fearsome prospect for central banks but the U.S. Federal Reserve might just welcome a sell-off that lifts Treasury yields towards levels that better reflect the robust state of the economy.Persistently low yields are a feature of bond markets across the
Read more »