Where will cryptocurrency prices head next?
Last week was a testing time for cryptocurrencies such as bitcoin.
Prices were already wobbling as the week began, after Tesla chief executive Elon Musk, a substantial advocate of the tokens and champion for the market’s online fans, reversed plans to accept bitcoin as payment for his electric vehicles.
But prices dropped by as much as 30 per cent in the middle of the week after the People’s Bank of China issued a warning to the country’s financial institutions against using the digital currencies for payments — a message it reiterated just a few days later. Chinese authorities have also launched a crackdown on bitcoin “mining” — the process whereby computers unlock the coins.
Adding to the sense that global regulators are tightening their grip on this lightly supervised industry, US tax and monetary authorities, including Federal Reserve chair Jay Powell, also hinted at…