Rolling coverage of the latest economic and financial news
- Ark’s Cathie Wood reiterates $500,000 price target
- Bitcoin plunged 25% amid wild selloff…. then rebounded to around $40,000 tonight
- Fears over crackdown in China sent crypto prices sliding
- Ethereum cryptocurrency to slash carbon emissions
Earlier:
- UK house prices rose 10.2% – fastest since financial crisis
- UK CPI inflation doubled to 1.5% per year in April
- Marie Claire owner reports record profits on back of Covid reading boom
Finally….after probably the most chaotic days trading since the crash of March 2020, bitcoin is holding up better than rival cryptocurrencies.
Bitcoin is currently trading around $38,300, a fall of over 11% today after worries about China’s crypto currency triggered today’s slump.
The sell-off has been triggered by news that China is looking to ban the use of cryptocurrencies. The speed of the sell-off suggests that leveraged accounts are being hit badly and the indiscriminate slump across the space also points to a lack of buying intent.
It maybe that this sell-off is an opportunity to enter or re-enter the market but the current level of volatility in the market should warn people against trying to ‘buy the dip’. Investors should not buy in a falling market and should wait until price action stabilizes before considering hitting the buy button.”
While Bitcoin was able to pare back its losses to just 11% from 31% Wednesday, its rival coins weren’t as lucky https://t.co/3ZhSd3ooXl
It begins to look like the bitcoin tail is wagging the stock market dog. This is how bitcoin and S&P 500 prices moved during the day….. pic.twitter.com/iYI9Mx9NJd
Related: Bitcoin falls almost 30% after China crackdown
After a wild day, the New York stock market has closed off its earlier lows, as traders shook off the turmoil in the crypto asset world.
The Dow Jones Industrial Average has ended 164 points lower at 33,896.04, down 0.5%.
U.S. stocks cut sharp losses and ended the wild session far off their lows on Wednesday as cryptocurrency prices largely recovered.
The Dow fell 0.48%.
The S&P 500 was down 0.29%.
The Nasdaq inched down 0.03%. https://t.co/iE4xSUiXTK pic.twitter.com/8ych2DBpuZ
The minutes of the late-April FOMC meeting reveal that, even though some officials were beginning to worry the upward pressure on inflation could last longer, they were still committed to maintaining the asset purchases.
“The economy remained far from the [FOMC’s] maximum-employment and price-stability goals” and, as a result, “it would likely be some time until the economy had made [the] substantial further progress” needed to begin tapering those purchases.