Tech

Bitcoin rebound leads FTSE 100 recovery

While the London market dropped as low as 84 points (2%) in the Wednesday session, 30 points (0.43%) were already been clawed back by 2.15pm

Bitcoin has stirred a recovery to the FTSE 100 today (20 May), as much of yesterday’s losses look set to be regained.

While the London market dropped as low as 84 points (2%) in the Wednesday session, 30 points (0.43%) had already been clawed back at the time of writing (2.30pm).

The quick rise and fall of the FTSE 100 can be placed in tandem with the volatility of Bitcoin’s value over the past 24 hours.

The cryptocurrency’s value had dropped as low as £22,361 at 2pm on 19 May, before bouncing back to £29,704 in one day.

Yesterday’s fall represented the largest one-day hit to Bitcoin since December 2017, and can be attributed to a mix of Chinese regulations and Tesla founder Elon Musk’s varying statements.

Beijing’s ruling that financial institutions may no longer accept crypto payments paired with Musk’s U-turn on Tesla’s cryptocurrency stance due to its “insane” energy usage to result in the 22% crash of Bitcoin.

However, a slowdown in the sell-off in Bitcoin was added to by investors seeing an opportunity to buy into the cryptocurrency, resulting in the slight recovery seen this morning.

The biggest risers thus far in the FTSE 100 are Experian with a 99 point (3.92%) gain and Associated British Foods with a 71 point (3.18%) gain, while Fresnillo and Tesco have lost 2.76% and 2.65% respectively.

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