Bitcoin abruptly dropped from a high of $58k reached on Sunday to a value of $47k on Monday 22 February for one of its biggest-ever corrections in dollar terms, dragging the rest of the crypto market down with it. When the dust settled, Bitcoin initially rose back up to $53k but has since lost and overnight dropped back below $50k. As of publication, it is trading for $45k with the total crypto market valuation slipping from $1.7 trillion to $1.3 trillion in just a day.
Altcoins sold off as in even bigger percentage points as the biggest cryptocurrency pulled everything down with it. Most commentators now agree that the comments made by new US Treasury Secretary Janet Yellen were the trigger that intensified the drop. On the other hand, crypto fans claim that such a correction was bound to happen sooner rather than later given the run-up in price witnessed over the past four months.
Over on Wall Street, the tech-heavy Nasdaq stock market dropped 2.46% altogether by the close on Monday. The only surprise risers were to be found in commodities, with both oil and gold trading higher.
Yellen and Roubini from the sidelines
Meanwhile, known crypto hater and New York University economics professor Nouriel Roubini gleefully retweeted a CNBC article that had copied some of his ideas of the past weeks as he had been warning about a possible bubble in both Bitcoin and tech stocks. With Bitcoin correcting and the Nasdaq dropping 2%, he felt vindicated.