As bitcoin lurches, Wall Street plots its way into cryptoland
To work out the fate of crypto-investing, watch what the banks do next
CRYPTO BUFFS have had a punishing week. On May 13th Tether, which issues a “stablecoin” widely used to facilitate bitcoin trading, said that just 2.9% of its $58bn-worth of coins is backed by cash reserves, feeding doubts about its dollar peg. Elon Musk, Tesla’s boss, tweeted that the electric-car maker would not after all accept payments in bitcoin. Then on May 18th China warned financial firms against servicing cryptocurrencies. The price of bitcoin tumbled to $30,000, less than half its record high in April, before stabilising at around $39,000.
This article appeared in the Finance & economics section of the print edition under the headline “Bit by bit”
Finance & economics May 22nd 2021
From the May 22nd 2021 edition
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