Saudi Press

Saudi Arabia and the world
Monday, Jun 02, 2025

Two-day bitcoin sell-off wipes out over $100 billion from the entire crypto market

Two-day bitcoin sell-off wipes out over $100 billion from the entire crypto market

The price of bitcoin slipped 10% in two days to fall below the $32,000 level for the first time since Jan. 11.


Bitcoin slumped for a second day Thursday, taking the digital currency’s losses to more than 10% over 48 hours and wiping off billions of dollars from the crypto market.

The price of bitcoin slipped 8% on Thursday to as low as $31,007, falling below the $32,000 level for the first time since Jan. 11, according to data from industry website CoinDesk.

The world’s most valuable digital coin has had a wild few weeks, briefly hitting $41,940 earlier this month before sinking sharply the subsequent week. The reason for its latest move wasn’t immediately clear, but investors told CNBC it is likely a natural correction.

“Corrections are a natural part of any market and are especially natural in the bitcoin ecosystem,” Michael Sonnenshein, CEO of Grayscale Investments, told CNBC. “From 2016-2017, we experienced 6 corrections of approximately 30% or more on the way to new highs.”

Ether, the second-biggest crypto token by market value, was down almost 9% in the last 24 hours at a price of $1,182. The coin hit an all-time high of $1,439 on Tuesday, according to Coin Metrics data.

The total market value of all cryptocurrencies shed more than $100 billion in the last 48 hours, falling from about $1.07 trillion to $918 billion as of 11:45 a.m. ET.

“I think you’ve got to accept there’s a tremendous amount of volatility in bitcoin, and it’s still very early stages,” Anthony Scaramucci, founder of SkyBridge Capital, told CNBC in a phone interview.

“Imagine Amazon, and Jeff Bezos and a few venture capitalists are still holding most of Amazon, and the company is experiencing explosive growth, exponential activity,” the former White House communications director added.

“If you look at Amazon in the first 3 years, you saw 50% drops in price. Bitcoin’s moves are akin to that because you’ve got close holders of bitcoin that are releasing bitcoin to the marketplace and the buying stability is shoring up. But it’s still not 100% there.”


Bitcoin’s latest price movement comes after the new U.S. Treasury Secretary, Janet Yellen, warned about cryptocurrencies being used “mainly for illicit financing.” The former Federal Reserve chairman said the government would “need to examine ways in which we can curtail their use and make sure that money laundering doesn’t occur through those channels.”

The plunge also comes despite seemingly positive news for bitcoin, which is still up over 140% in the last three months. On Wednesday, asset manager BlackRock — which has $7.8 trillion in assets under management — filed separate prospectuses for two funds that may buy bitcoin futures contracts, in the biggest sign yet that institutional investors are flocking to the virtual currency.

Bitcoin bulls say the main reason for bitcoin’s upward momentum over recent months has been the rise of institutional demand for the cryptocurrency. Big-name investors like Paul Tudor Jones and Stanley Druckenmiller have come out as bitcoin believers, while some asset managers are starting to add it to their portfolios.

“Who’s to say whether we’ve seen the bottom of the correction, but at Grayscale we know that there continues to be a flurry of demand, especially from institutional investors who have longer term holding preferences,” Sonnenshein said.

Scaramucci said Skybridge’s bitcoin-focused fund, which launched earlier this month, initially invested $25 million and that has since risen to over $60 million already. Skybridge’s clients are mainly high-net-worth individuals, he added.

The cryptocurrency’s remarkable surge has also been fueled in part by a narrative that it offers a store of value akin to gold in times of unprecedented economic stimulus, which some investors fear will cause a spike in inflation.

However, skeptics worry that bitcoin is just another market bubble waiting to burst. The cryptocurrency is known for its volatility — it skyrocketed close to $20,000 in late 2017 before plunging the following year.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
×