(Bloomberg) — Bitcoin dropped back below $40,000, erasing most of the gains yesterday that were sparked by optimism about U.S. President Joe Biden’s executive order to put more focus on the crypto sector.
The largest cryptocurrency declined as much as 5.9% to $39,432 on Thursday, falling for the first time in three days. Ether dropped as much as 4.4% to $2,589. Most of the top cryptocurrencies were down at least slightly in the past 24 hours to 1:15 p.m. Hong Kong time, according to pricing from CoinGecko.
Bitcoin jumped as much as 11% on Wednesday amid optimism about the trajectory of U.S. regulation of digital assets, as the framing of Biden’s executive order on cryptocurrencies was made clear. Those gains proved fleeting as traders digested the news, and the token is again trading near the middle of the range where it’s spent most of the past two months.
Futures on the S&P 500 and Nasdaq 100 indexes turned negative around the same time as Bitcoin’s price took a second leg lower. The cryptocurrency has been relatively correlated with U.S. stocks since the beginning of the Covid-19 pandemic.
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