Bitcoin jumped 33% on Wednesday afternoon after falling about 31% in the morning. The wild swings caused outages on crypto exchanges while eliciting mixed reactions from Wall Street.
Bitcoin started the plunge following comments by Elon Musk that Tesla would not accept the digital token as payment for its cars.
The People’s Bank of China statement reiterating that it won’t allow bitcoin as a mode of payment also added pressures to the world’s largest cryptocurrency.
Whereas there was no proximate cause of crypto rout on Wednesday, it is believed that selling pressure caused the plunge when bitcoin fell below its average price in the last 200 days.
The price of other cryptocurrencies also fell on Wednesday, with Ether, shedding more than 40%.
Cathie Wood said her monitors indicated a “capitulation” of bitcoin suggesting a sale of the digital token.
Some investors capitalized on the bitcoin plunge, with Justice Sun, a tech entrepreneur, saying he bought $152 million of the digital token at the $37,000 price level.
Crypto rout also caused a drop in related stocks with shares of Coinbase shedding as much as 13%
World’s largest cryptocurrencies are currently gaining. BTCUSD is up 13.14%, ETHUSD is up 19.46%
