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Bitcoin tanked earlier today and took some key players with it before rebounding.
Bitcoin fell below $30,000 Tuesday morning, sliding to a low of $28,814.75 within the past 24 hours. It’s the first time the crypto has dipped below $30,000 since Jan. 28. The price rebounded towards the latter part of the day and clocked in at $32,560.71 as of 4:15 p.m. Eastern Time, according to Coindesk.
Coinbase Global
(ticker: COIN), the largest publicly traded cryptocurrency exchange, reached an intraday low of $210.77, a far cry from its $381 opening price at its IPO in April. Shares on Tuesday closed flat at $222.47. The company made waves by going public with a $100 billion valuation, subsequently sending Bitcoin skyrocketing to an all-time high of $64,829. Almost all of that growth has been wiped out as of late due to China’s crackdown on crypto mining and trading.
Microstrategy
(MSTR) ended the trading session down 5.1% to $553.72, but reached an intraday low of $513.02, a 12.1% decline. According to a press release, the business intelligence company recently spent about $489 million in cash on 13,005 bitcoins at a price of $37,617 per bitcoin. It holds around 105,085 bitcoins total.
Microstrategy
has been viewed as a proxy stock for Bitcoin since it purchased $250 million worth, or 21,454 bitcoins, last August, citing the digital currency’s capabilities as a hedge against inflation and higher returns as primary reasons.
“This investment reflects our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” said
Michael J. Saylor,
CEO of MicroStrategy in the press release announcing the purchase. “MicroStrategy has recognized Bitcoin as a legitimate investment asset that can be superior to cash and accordingly has made Bitcoin the principal holding in its treasury reserve strategy.”
Bitwise Crypto Industry Innovators
exchange-traded fund (BITQ) ended Tuesday’s trading down 1.2% to $21.74, after rebounding from a low of $20.26.
Grayscale Bitcoin Trust
(GBTC), a digital currency investing and cryptocurrency asset management company, slid 13.4% to $24, but recovered to close up 1.1% to $28.01.
“Typically the investor behavior has been one of using these pullbacks in price opportunistically to add to their positions,” Grayscale CEO
Michael Sonnenshein
said in a June 17 television interview with Bloomberg Technology. He emphasizes that investors who are committed to the thesis of crypto investing are not fazed by the periodic volatility and will use the downturns to add to their portfolio.
PayPal Holdings
(PYPL) and
Square
(SQ), which enabled easy buying and selling of bitcoin, closed up 1.3% and almost 1%, respectively.
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