Bitcoin’s misfortunes spreading pain across the globe

When the mines are booming, sell picks and shovels. When the mines shut down…run for the hills.
The post Bitcoin’s misfortunes spreading pain across the globe appeared first on The Motley Fool Australia. –

The Bitcoin (CRYPTO: BTC) price is down 2.1% over the past 24 hours.

One Bitcoin is currently worth US$33,312 (AU$43,832), giving the world’s biggest cryptocurrency a market cap of US$624.3 billion.

That’s well off the US$1.2 trillion market cap when Bitcoin was trading at all-time highs of US$64,829 in mid-April. Since then, the token has lost 49% of its value.

Crypto mining machines tumble

The Bitcoin price may have fallen by half since April’s records, but the price of the virtual picks and shovels used to mine the token have tanked even more.

Bitmain Technologies is the world’s biggest producer of the machines used to mine Bitcoin. And Bitmain reported yesterday (overnight Australian time) that the prices for its top-of-the-line mining machines are down 75% since April.

As Bloomberg reports, Bitmain has now “suspended sales of machines for spot delivery globally, aiming to prop up local prices after crypto miners fleeing Beijing’s crackdown dumped used mining rigs on the market”.

As you may be aware, China is aiming to stamp out crypto mining within its borders. In addition, it is looking at banning its financial institutions from facilitating crypto transactions.

Bitmain did not say when it expected to resume selling its Bitcoin mining devices.

$4.7 billion of Bitcoin vanishes

Ameer and Raees Cajee are 2 brothers who founded South African-based cryptocurrency investment platform Africrypt. They now appear to have vanished along with their platform’s US$3.6 billon (AU$4.7 billion) worth of Bitcoin.

Ameer, the firm’s COO, told the platform’s customers that Africrypt had been hacked back in April. Some of his clients pursued the matter, hiring law firm Hanekom Attorneys.

Hanekom Attorneys said (quoted by Bloomberg): “We were immediately suspicious as the announcement implored investors not to take legal action. Africrypt employees lost access to the back-end platforms seven days before the alleged hack.”

The firm’s investigation found Africrypt’s pooled funds were transferred from its South African accounts and client wallets, and the coins went through tumblers and mixers – or to other large pools of bitcoin – to make them essentially untraceable.

With Bitcoin and other cryptos already under the microscope by legislators across the globe, the alleged $4.7 billion theft will only up the pressure for greater regulation.

While that may be in the best interests of investors in the longer-term, it could put further downward pressure on the Bitcoin price in the mid-term.

The post Bitcoin’s misfortunes spreading pain across the globe appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Six things investors need to know before investing in cryptocurrencies

Following another wild night, the Ethereum price is gaining…for now

Here’s Why Bitcoin, Ethereum, and Dogecoin Crashed Tuesday

Ignore the ‘death cross’…here’s why the Bitcoin price is crashing

Cryptocurrencies like Bitcoin just tanked again!

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!