Bitcoin plunges but dogecoin bursts into Musk’s tweets; ASX closes after Wall St rebound
The Australian stock market closed higher after gains on Wall Street, but volatility continued in the cryptocurrency markets as bitcoin prices collapsed as dogecoin’s value rebounded.
- ASX closes with a slight gain after finishing below 7000 yesterday
- Wall Street rallies as investor worries about inflation cool
- Tech stocks rise but Tesla loses 3% after Elon Musk rejects Bitcoin
Bitcoin dropped as low as US $ 47,150 overnight, after Elon Musk doubled down on his criticism of the cryptocurrency’s energy consumption, after announcing that Tesla would no longer accept it as payment for his cars , citing concerns about the use of fossil fuels in its mining operation.
After going above $ 50,000 this morning, bitcoin had plunged 3.7% and was worth $ 49,193 by 4:35 p.m. AEST.
Mr Musk said Tesla will keep its bitcoin holdings with the plan to use the cryptocurrency as soon as mining shifts to more sustainable energy sources.
While Mr. Musk criticized Bitcoin’s environmental issues, he also revealed talks to make Dogecoin less destructive to the environment.
“Working with Doge developers to improve system transaction efficiency. Potentially promising,” Musk said on Twitter.
Dogecoin rose more than 20% from around $ 0.43 to $ 0.52 on the Binance cryptocurrency exchange immediately after the tweet.
Almost worthless at the end of 2020, dogecoin became the fourth largest cryptocurrency by market cap, according to CoinMarketCap.com, and has grown more than a hundred times this year as speculators crammed into the class. of assets.
This is the third major cryptocurrency move Mr. Musk has unleashed in a week, after dogecoin already exploded and then plunged into the back of the appearance of Tesla’s founder’s guest in the American comedy show Saturday Night Live.
“He’s still beating the drum,” said Robert Lutts, chief investment officer at Cabot Wealth Management.
Inflation fears appeasement
In New York, the Dow Jones index posted a strong gain, up 1.3% to 34,031, the benchmark S&P 500 rose 1.2% to 4,112, while the highly technological Nasdaq Composite , ended trading up 0.7% at 13124.
Apple and Microsoft gained more than 1.5%, Facebook rose 0.9%.
However, Tesla weighed on the market, losing 3%.
The positive trading day on Wall Street follows several days of selling in the market triggered by fears of rising interest rates in the United States as investors ditched growth stocks.
It comes as new U.S. data shows U.S. jobless claims were at their lowest level for 14 months in April.
Carter also referred to new data from the United States Department of Labor which shows producer prices last increased by more than 6 percent in April.
“The inflation boogeyman is back at just the right time, and will continue to scare the markets for months to come,” Carter said.
ASX up, commodity prices down
The Australian stock market ended the trading week with a slight gain after a topsy-turvy week.
The benchmark ASX 200 closed 0.4% higher at 7,014.
All Broad Ordinaries also rose 0.4 percent to 7,239.
It follows a week in reverse which saw the ASX 200 drop below 7,000 points on Thursday just three days after setting a closing record.
Whitehaven Coal (+ 9.5 percent), Treasury Wine Estates (+ 6.2 percent) and Clinuvel Pharmaceuticals (+ 4.6 percent) were among the top 200 fastest growing companies. Eagers Automotive (+ 4.2%) and Orica (+ 3.6%).
On the other hand, miners Nickel Mines (-4.7%), Pilbara Minerals (-4.7%) Lynas Rare Earths (-4%) and enterprise software company Xero (-3.7% ) led the losses.
Financials were strong and up nearly 1 percent at the close.
The Commonwealth Bank of Australia climbed 1.5%, hitting its all-time high of $ 97.38.
The Australian dollar was flat at 77.22 US cents, after briefly dropping below 77 cents overnight.
After posting record prices of nearly US $ 240 a tonne earlier in the week, the spot price for iron ore plunged 6.9 percent to US $ 217.65 on China’s efforts to reduce prices.
Shares of iron miner Fortescue fell 2.7% to $ 22.80 a share.
The price of Brent crude oil was stable and at US $ 66.90 per barrel at 4:33 p.m. AEST.
Spot gold was slightly higher and was selling at US $ 1,831.81 per ounce.
On the European markets, the STOXX 600 index fell (-0.9 pc), as did the British FTSE (-0.6 pc), while the German DAX rose by 0.3%.