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Bitcoin Drops After Climbing To All-time High

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NEW YORK/LONDON: Bitcoin fell on Monday after surging to its latest record high a day earlier as a sell-off in global equities curbed risk appetite, with some investors also citing concerns about the rapid rise in the price of the virtual currency.

The most popular cryptocurrency fell to $47,400, a one-week low. At one point, it lost nearly 17% of its value, or about $160 billion of its total market capitalization.

Bitcoin recouped some of the losses later in the trading session and was last down around 5.5% at $54,322, on track for its worst day since Jan 27. Its market cap was just under $1 trillion on Monday.

“Fairly standard after a rise this large to see a pullback. The usual dislocation of markets was seen,” said Charles Hayter, chief executive officer of crypto data provider CryptoCompare in London.

Traders also pointed to the unwinding of highly leveraged long positions in the cryptocurrency.

Bitcoin, which rallied on Sunday to a peak of $58,354, was still up more than 80% this year. Since hitting a low in March below $4,000, bitcoin has surged nearly 1,200%.

Tesla Inc boss Elon Musk, whose tweets on bitcoin have added fuel to the cryptocurrency’s rally, said on Saturday the price of bitcoin and rival cryptocurrency ethereum seemed high.

U.S. Treasury Secretary Janet Yellen also tamped down the flames on Monday, saying bitcoin is extremely inefficient at conducting transactions and is a highly speculative asset.

“The selloff across the board this week is a result of some of last week’s exuberance easing, as well as a much-needed unwinding of over-leveraged long positions,” said Ross Middleton, co-founder of cryptocurrency exchange DeversiFi.

Ethereum, which tends to move in tandem with bitcoin, also tumbled after hitting a record high on Saturday. It hit a three-week low on Monday and was last down about 8.2% at $1,774.

Trading platform IG said on Monday it had reached its limit for the amount of cryptocurrency it holds as a business and that it was no longer accepting new cryptocurrency buy orders from clients.

Bitcoin’s meteoric rise has been fuelled by signs that it is gaining acceptance among mainstream investors and companies, from Tesla and Mastercard Inc to BNY Mellon.

“We do tend to think that there’s a good chance of a down week and small correction coming in off of this, although it does little to dull medium-term prospects,” said Joseph Edwards of Enigma Securities, a cryptocurrency brokerage in London.

BNY Mellon is working with Fireblocks in conjunction with a new unit it announced earlier this month to help clients hold, transfer and issue digital assets, according to a report on Monday by CoinDesk.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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Airline CEOs, Biden Officials Consider Green-Fuel Breaks

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Chief executives of the nation’s largest passenger and cargo airlines met with key Biden administration officials Friday to talk about reducing emissions from airplanes and push incentives for lower-carbon aviation fuels.

The White House said the meeting with climate adviser Gina McCarthy and Transportation Secretary Pete Buttigieg also touched on economic policy and curbing the spread of COVID-19 travel has been a vector for the virus. But industry officials said emissions dominated the discussion.

United Airlines said CEO Scott Kirby asked administration officials to support incentives for sustainable aviation fuel and technology to remove carbon from the atmosphere. In December, United said it invested an undisclosed amount in a carbon-capture company partly owned by Occidental Petroleum.

A United Nations aviation group has concluded that biofuels will remain a tiny source of aviation fuel for several years. Some environmentalists would prefer the Biden administration to impose tougher emissions standards on aircraft rather than create breaks for biofuels.

Biofuels are false solutions that dont decarbonize air travel, said Clare Lakewood, a climate-law official with the Center for Biological Diversity. Real action on aircraft emissions requires phasing out dirty, aging aircraft, maximizing operational efficiencies and funding the rapid development of electrification.

Airplanes account for a small portion of emissions that cause climate change about 2% to 3% but their share has been growing rapidly and is expected to roughly triple by mid-century with the global growth in travel.

The airline trade group says U.S. carriers have more than doubled the fuel efficiency of their fleets since 1978 and plan further reductions in carbon emissions. But the independent International Council on Clean Transportation says passenger traffic is growing nearly four times faster than fuel efficiency, leading to a 33% increase in emissions between 2013 and 2019.

The U.S. accounts for about 23% of aircraft carbon-dioxide emissions, followed by Europe at 19% and China at 13%, the transportation group’s researchers estimated.

The White House said McCarthy, Buttigieg and economic adviser Brian Deese were grateful and optimistic to hear the airline CEOs talk about current and future efforts to combat climate change.

Nicholas Calio, president of the trade group Airlines for America, said the exchange was positive.

Airlines are ready, willing and able partners, and we want to be part of the solution” to climate change, Calio said in a statement. We stand ready to work in partnership with the Biden administration.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor



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