Crypto market loses $500bn after investor’s Fed warning
The total value of the global cryptocurrency market narrowed by around $500 billion after prominent investor Louis Navellier’s warning that the US Federal Reserve’s tapering could burst the Bitcoin and crypto bubble.
In an interview to London-based news outlet Insider, Navellier said the Fed’s tapering “should create a correction in risk assets, of which bitcoin is a part.”
He also warned that Bitcoin’s price could drop below $10,000.
Following his remarks, the global crypto market’s value plummeted to $2.13 trillion as of 08.39 (GMT0539) on Saturday, from $2.65 trillion on Friday.
The flagship Bitcoin lost around 16% to hit $47,719 within 24 hours, while Ethereum dropped by 13.4% to $3,949.