On Thursday, the top cryptocurrency plummeted below $40,000, wiping off all of the previous day’s gains fuelled by excitement about US President Joe Biden’s executive order to give the crypto industry more attention.
On Thursday, Bitcoin sank 5.9% to $39,432 for the first time in three days, while Ethereum, the second-largest cryptocurrency, lost 4.4 percent to $2,589.
The momentary success of bitcoin
As it became obvious how Joe Biden’s crypto-currency executive order was phrased, Bitcoin soared 11% on Wednesday, indicating confidence about the future of digital asset regulation in the United States.
However, as traders digested the news, the gains were short-lived, and the token is now trading in the middle of the range, where it has spent the majority of the past two months.
Around the same moment that bitcoin’s price plummeted into the second stage, futures for the S&P 500 and Nasdaq 100 indexes turned negative. Since the commencement of the coronavirus outbreak, cryptocurrency has had a strong correlation with US stocks.