Bitcoin plunges as crypto market loses collective $367 billion
Transcript
00:00I'm Conway Higgins reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:04The Wall Street recalibration extends into a new week.
00:07In a very rare feat, the Dow dropped over 1,000 points
00:12right at Monday's open.
00:13Investors fear a recession is right around the corner
00:16as slowdowns in hiring and in manufacturing activity
00:19extend into another month.
00:21New data from the services sector
00:23is mitigating some of that fear.
00:25The Institute for Supply Management's
00:27non-manufacturing index for July
00:29came in at a better than expected 51.4,
00:33which means the massive services sector
00:35returned to growth last month.
00:37In related news, crypto has not been
00:39immune from a swift downward shift in investor psychology.
00:44$367 billion in crypto market value
00:47has been wiped out in just 24 hours.
00:50Half a trillion dollars disappeared
00:52over the past three days.
00:53The selloff has been most pronounced for Bitcoin.
00:57The digital currency has slid from $70,000 to $50,000
01:01in just a matter of days.
01:03Bitcoin has shed over 1 third of its value
01:06since hitting a record high in March,
01:08though it is still up for the year.
01:10Ether, on the other hand, has seen all of its gains
01:13evaporate for 2024.
01:15Losses in the crypto market may have caught investors off guard.
01:19Since its inception, crypto has been
01:21billed as a so-called safe haven,
01:23a place to hide during times of market uncertainty and upheaval.
01:27That, however, has not been the case.
01:30Making matters possibly worse, hundreds of millions of dollars
01:34have recently been invested in crypto
01:36by way of new Bitcoin and Ether ETFs,
01:39creating the landscape for the possibility for even more
01:42selling to come.
01:44That'll do it for your daily briefing from the New York
01:46Stock Exchange.
01:47I'm Conway Gittens with The Street.
01:53Thanks for watching.