Bitcoin Recovers After Crypto Sale Ends
Bitcoin collapsed 30% today after China banned financial services companies from providing cryptocurrency services, dragging other major cryptocurrencies at the same time.
It rebounded after approaching $ 30,000, a level not seen since January, and well below its April high of $ 65,000. The recession quickly infected other cryptocurrencies, with Ethereum sinking more than 36% and Dogecoin falling more than 41.5%.
In the UK, mining stocks pushed blue chips lower on a turbulent day for London markets, prompted by falling commodity prices and concerns about inflation.
Commodities fell after Chinese authorities suggested curbing price increases, prompting investors to flee holdings in the sector.
Anglo-American led the sale as the worst performer on the benchmark, with losses of 156p to Â£ 31.54. He was followed by another minor BHP, which fell from 102.5 pence to Â£ 21.38, and Antofagasta, who lost 55.5 points to close at Â£ 15.58.
Rio Tinto paid 211p and fell to Â£ 60.39, and Glencore dropped from 10.8p to 313.8p.
This contributed to a broader market pullback as inflation fears continued to plague traders’ confidence.
Danni Hewson, financial analyst at AJ Bell, said a move by Iceland to raise interest rates would have done nothing to ease the nerves of shareholders.
She added: âThe UK inflation figures will have prompted some investors to take a hard look at their portfolios.
“Jittery sums up the performance of UK markets well today, and all of them have ended firmly in negative territory.” Yesterday, new figures showed inflation more than doubled in April, with rising energy bills pushing up the cost of living. Investors were also concerned that shortages in supply chains and labor could threaten the country’s economic recovery.
Oil majors have also fallen as the price of crude continues to rise. Royal Dutch Shell joined the miners in the top 10 worst performers, dropping 37.8 pence to Â£ 13.24, while BP dropped from 8.5p to 308.4p.
the FTSE 100 lost 84.04 points to close at 6,950.20, with just 17 of his 101 constituents ending in the green. the FTSE 250 loses 98.03 points to 22 234.53.
In more positive news, the plumbing group Ferguson was the top riser on the FTSE 100 as it hit its all-time high of Â£ 94.72 – after gaining 202p during the day – after raising its outlook for the full year. This came as the company posted a 65% jump in quarterly profit, while revenues for the three months ending in March increased by a quarter to $ 5.9 billion ($ 4.2 billion pounds sterling) compared to the same period last year.
Ferguson said demand from the United States increased as the country reopened, with revenues from its U.S. operations increasing 23%.
Elsewhere, defense matters BAE systems fell 0.6p to 519.8p, although he said he was on track to meet his goals for the full year, with his air, maritime, electronic systems and intelligence operations and security all efficient.
Sales are expected to rise 5-7% from the Â£ 20.8bn achieved last year, and underlying profits are expected to rise 6-8% from the previous level of Â£ 2bn.