The price of bitcoin was hit hard after receiving scathing criticism from some of the financial world’s most well known billionaires.
The popular cryptocurrency dipped to a low of $9,231 on Monday, 10:22 p.m. UTC, when earlier in the day, it was still trading at $9,665. It has since recovered and is at $9,438 at press time, according to CoinMarketCap.
Berkshire Hathaway Chairman and CEO, Warren Buffett unleashed another round of bitcoin bashing, telling CNBC that the “asset itself is creating nothing.”
“When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along,” he said on CNBC’s “Squawk Box” after Berkshire’s annual shareholder meeting.
Buffett has been on a roll of late with his bashing of the cryptocurrency, calling bitcoin “probably rat poison squared,” while Berkshire Chairman Charlie Munger relayed during the annual meeting that trading in cryptocurrencies is “just dementia.”
Microsoft Co-founder Bill Gates told CNBC in that same interview that he would bet against bitcoin if he could.
“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,” said Gates. “I would short it if there was an easy way to do it.”
Speculation that the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission are gathering for a meeting could also have an adverse effect on the market.
“I think that Buffett and Gates comments could be having an effect but I think the bigger factor at play today is regulatory,” said Spencer Bogart, partner at Blockchain Capital. “Some market participants are concerned the SEC will issue negative commentary coming out of a hearing on Monday.”
“While Bitcoin is not under direct scrutiny, the ramifications of this meeting could affect the entire global crypto market,” said Joe DiPasquale, CEO of BitBull Capital. “The hesitation we are seeing right now could easily be broken and lead to a fresh rally, should a favorable tone be set by officials in attendance.”
Other cryptocurrencies were also impacted on Monday. Ether fell by an estimated 7%, trading near $731 according to CoinMarketCap. Ripple and litecoin also fell roughly 5%.
- Australia Pumps in $700,000 for Blockchain Research 10 May 2018
- Relief for Cryptocurrency Prices After Consecutive Losses 10 May 2018
- Korea’s New Financial Watchdog Chief Aiming for Stable Crypto Market 10 May 2018
- Indian Cyber Cell Unit Apprehend Ethereum Miners in $15 Million MLM Scheme 10 May 2018
- BTC Wallet Electrum Identifies Copycat 10 May 2018
Bitcoin3 days ago
Bitcoin Vietnam Losing its Domain Name
Bitcoin2 days ago
Bitcoin Drop Has Correlation with Launch of Futures Market, Says Fed Reserve Report
Business6 days ago
Nearly Half of ICOs This Year Began with Nothing But Idea and a Whitepaper
Bitcoin6 days ago
Nouriel Roubini Triggers Shouting Match at Milken Institute Global