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The 2-day bitcoin sell-off wipes $ 100 billion from the whole crypto market

Yuriko Nakao | Getty Images

Bitcoin slumped for a second day on Thursday, increasing digital currency losses to more than 10% in 48 hours and wiping billions of dollars from the crypto market.

The price of Bitcoin fell over 6% to $ 32,527 on Thursday and fell below the $ 33,000 level for the first time since January 13, according to industry website CoinDesk.

The world's most valuable digital coin has had some wild weeks of volatility, briefly hitting $ 41,940 earlier this month before falling sharply the following week.

Ether, the second largest crypto token by market value, also fell nearly 10% from where it was two days ago. According to Coin Metrics data, the coin hit an all-time high of 1,439 on Tuesday.

The total market value of all cryptocurrencies has lost more than $ 100 billion in the past 48 hours, falling from about $ 1.06 trillion to nearly $ 949 billion as of 9:20 a.m. London time.

It comes despite seemingly positive news for Bitcoin, which is still up over 150% in the past 3 months. On Wednesday, wealth manager BlackRock, who has $ 7.8 trillion in assets under management, filed separate prospectuses for two funds that may be buying bitcoin futures contracts. This is the biggest sign yet of institutional investors flocking to the virtual currency.

Bitcoin bulls say the main reason Bitcoin has risen in recent months has been the surge in institutional demand for bitcoin. Well-known investors like Paul Tudor Jones and Stanley Druckermiller have turned out to be Bitcoin believers as some money managers are starting to add them to their portfolios.

The notable surge in the cryptocurrency was also fueled in part by the narrative that it provides a supply of gold in times of unprecedented economic stimulus that some investors fear will cause inflation to spike.

However, skeptics fear that Bitcoin is just another market bubble waiting to burst. The cryptocurrency is known for its volatility – it soared nearly $ 20,000 in late 2017 before plummeting the following year.

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