Bitcoin dips under $20K


Bitcoin dips under $20K

Bitcoin temporarily fell below $20,000 during the Asian afternoon hours as Asian and European equity markets fell.

Bitcoin plummeted to $19,880, returning to levels seen last week, before rebounding to $300. In mid-June, the asset sank as low as $17,710 as investors fled riskier assets in a bleak macroeconomic climate. In Spain, inflation reached a nearly 37-year high of 10%, dampening investor optimism in Europe. The Stoxx Europe 600 index declined 0.84 percent, while the DAX in Germany fell 1.84 percent. Despite some Chinese towns lowering quarantine rules on Tuesday, stocks in Asia fell, with Japan’s Nikkei down 0.92 percent and the Shanghai Composite down 1.40 percent.

As financial markets have plummeted in recent months, a trio of Chinese-based enterprises involved in Bitcoin mining has struggled considerably. Ebang International Holdings Inc (EBON) has suffered the damage. The China-based maker of crypto mining devices recently issued a statement stating that the NASDAQ warned that it could be delisted if it traded below $1 per share for 30 consecutive days. The stock is selling at $0.0477, down 85 percent year to date and more than 90 percent from its IPO price of $5.23.

If Ebang wishes to avoid delisting, it must raise its share price by over $1 for at least ten consecutive days. Canaan Inc (CAN), a rival mining equipment maker, and BIT Mining Ltd (BTCM), a mining pool operator, are two more China-based crypto mining companies that have fared poorly. The former said it would repurchase $6.6 million in warrants issued last year. On the other hand, BIT Mining raised $16 million by issuing its warrants to stay afloat. While each of these businesses is unique, they all have one thing in common. They’re all highly influenced by Bitcoin’s price. Companies in the industry will struggle if prices fall. Because most of these companies’ assets are either cryptocurrency or mining equipment, a reduction in demand for either can be disastrous.

The post Bitcoin dips under $20K appeared first on FinanceBrokerage.

Market overview: More Fresh Profits

Previous article

Economic Report: U.S. first-quarter GDP shrank 1.6%. The second quarter isn’t looking much better

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News