Bitcoin Slides from Recent Highs Amid Broader Market Decline
- Digital assets drop on Tuesday as the rally pauses for breath
- Bitcoin erases its Monday gains, skitters down about 2.7% to $48,200
Bitcoin Slides from Recent Highs
The price of Bitcoin slid over 2% on Tuesday, erasing all its Monday gains as the entire cryptocurrency market entered into a broad selloff. Crypto market participants were not able to sustain the price above $50,000 a day after it reached the milestone.
Bitcoin closed Tuesday’s market session at $48,200, down 2.5%, or roughly $1300, as buying momentum faded and the market slipped into the red for the day.
Cryptocurrencies have been pushing to the upside over the past five weeks despite regulatory pressures around the world. The recent slide, according to crypto advocates, is a healthy pullback after regaining the $50,000 threshold. Supporters of digital finances say the cooldown is a needed step for bitcoin and other crypto tokens in order for the next upside swing to accumulate enough buying momentum.
As bitcoin slipped from its Monday highs, ether and other major tokens also traded in the red yesterday. The Ethereum token dropped about 3.7%, or roughly $130, to a closing price of around $3,200. Alternative cryptocurrencies such as Cardano, XRP, and Dogecoin, erased between 4% and 6% from their valuations on Tuesday.
Investors Await Regulations
Meanwhile, as asset managers, investment banks, and institutional investors largely await regulators to introduce at least basic levels of protection, Citigroup is considering offering Bitcoin futures. The decision, if given the green light, would allow Citi’s biggest clients to trade CME Bitcoin futures, according to a report by Bloomberg.
“Our clients are increasingly interested in this space, and we are monitoring these developments,” Citigroup said in an emailed statement.
The move by Citi would be a continuation of a trend on Wall Street in which major banking institutions are making solid efforts to push into cryptocurrencies.
“Given the many questions around regulatory frameworks, supervisory expectations, and other factors, we are being very thoughtful about our approach,” Citigroup also mentioned. “We are presently considering products such as futures for some of our institutional clients, as these operate under strong regulatory frameworks,” the announcement said.
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