Bitcoin Tumbles as Stellar Run for Digital Tokens Loses Footing
(Bloomberg) — Bitcoin slumped Friday bringing this month’s spirited surge to a halt and taking rival coins down with it.
Bitcoin slid as much as 14%, before trimming that loss to 5.5%, trading at $7,253 as of 10:19 a.m. in London. Ethereum, Bitcoin Cash and Litecoin were down about 5%-6%. The Bloomberg Galaxy Crypto Index tumbled 8.4%, heading for its largest one-day slide in a month.
Speculation over what underpinned the early-May surge in the anonymously owned tokens has run from a possible squeeze on short positions to investor relief that recent hackings and scandals weren’t disrupting the broader market.
Of particular note was conjecture that stronger buying of Bitcoin — the most stable digital asset — came from sellers of Tether, the once-stable intermediary coin on crypto platforms whose promoters recently said it was no longer backed by U.S. dollars in a 1-to-1 ratio.
Last month the New York attorney general accused Tether and giant crypto exchange Bitfinex last month of participating in a cover-up to hide losses of about $850 million.