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    Bitcoin drops to $32,600 as financial markets fall

    July 8, 2021 | 10:43 a.m.

    The price of bitcoin plummets on Thursday, amid falling global financial markets and rising pressures from authorities on the world’s most popular digital currency.

    At 9:50 a.m. (Mexico City time) bitcoin loses about 6%, to $32,636, according to data CoinMarketCap. Other larger cryptocurrencies by market value such as ethereum and dogecoin also record declines.

    The decline in cryptocurrencies is in line with that of other high-risk assets such as stocks, leading investors to rotate over safe-haven assets such as Treasuries.

    Investors fear that the rise in COVID-19 cases and the advance of more contagious strains like Delta could slow the recovery of the global economy. In Japan, a new state of emergency was declared in Tokyo, preventing spectators from attending the Olympic Games that begin this month.

    Another factor that motivated the fall was a letter sent by Democratic Senator Elizabeth Warren to the chairman of the U.S. Securities and Exchange Commission (SEC), in which she warned about the risks posed by the volatility of cryptocurrencies to consumers and markets.

    Bitcoin has in recent months been in the $30,000 range, far from the all-time high of more than $64,000 it reached in mid-April, due to mounting regulatory pressures in China over concerns about mining activities.

    Some investors believe bitcoin could fall to $20,000, according to CNBC, although they have good prospects in the long run, as a lower price opens the door to opportunity purchases.

    On Tuesday, China’s central bank called for the closure of a company on suspicion that it provided software services to transact with virtual currencies.

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