NEW YORK • A brutal bout of selling that wiped billions of dollars from profitless growth companies, initial public offering stocks and special purpose acquisition companies (Spacs) has caught up with Bitcoin, further stressing risk tolerances and brokerage balances among small-time traders.
Retail dip-buyers, whose willingness to stand firm amid turmoil helped power the S&P 500 to a 21 per cent gain this year, are nursing some of their worst wounds of the year as losses pile up.
A hawkish turn from the US Federal Reserve and the Omicron variant have erased more than 10 per cent off the market value of cryptocurrencies, US$50 billion (S$68.6 billion) from newly public companies and 14 per cent from a basket of meme stocks.
Professional speculators have already voted, offloading risk at the fastest pace in 20 months. Big drops in an asset like Bitcoin have the potential to lower confidence among the larger population of bettors, a concept described as negative wealth effect.
All told, crypto investors have some US$250 billion less to play within their accounts than they did when stocks starting sliding on Nov 26. It is a worrisome backdrop for the market.
This story is from the December 07, 2021 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 07, 2021 edition of The Straits Times.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Challengers role scared Zendaya so much, she had to do the film
The actress says she was drawn to how multi-layered the characters in the sports romance are
WORLD CHAMPIONS HEADLINE NOMINEES
Singapore Sports Awards finalists reflect momentous’ 2023 for national athletes
FROM SLOW BURNER TO SHOW-STOPPER
Arteta praises tremendous’ Havertz as he punishes former club Chelsea with a brace
FENCERS ON MISSION TO QUALIFY FOR OLYMPICS
Well-prepared contingent have last chance to achieve Paris 2024 goal at UAE tournament
FI's Horner, Vasseur fine with new points plan
Formula One teams will discuss on April 25 a proposal to extend the points-scoring positions from 10th place to 12th place next season.
Doncic defeaning as Mavs even series with Clippers
Luka Doncic wanted to \"make some noise\" to let the Los Angeles Clippers know who the Dallas Mavericks really are, and he did just that on April 23.
ARTILLERY TAKES AIM AT CLASSIC
3YO Sprint second convinces Logan to press on to 1,400m leg
Support parents' right to determine digital usage for their children
The Ministry of Education's response to Mr Joel Chan Yi-Hsiung and Mr Andrew Soo is a reiteration of its long-held position and has not adequately addressed the call to give parents greater autonomy and optionality in managing their children's use of personal learning devices (Schools, parents can guide usage of digital devices by students with app, April 16).
How the secret of sleep keeps us awake
Businesses can keep exploiting our tiredness while scientists seek to explain the mechanics of it.
New flexi-work guidelines prompt firms to rethink workplace policies
Many see potential for higher productivity, though smaller firms appear less convinced