Bitcoin promptly lost over 10% of its value in minutes Monday morning as news of a Greek bailout deal surfaced.
The latest financial aid package, agreed after over 17 hours of talks between Athens and its creditors, will see Greece adhere to strict financial reforms.
Bitcoin price reacts
In a post-talks conference, Eurogroup President Jeroen Dijsselbloem praised what he called Greece’s “constructive position,” while German president Angela Merkel said she thought that “trust could be regained” between Greece’s partners. Trust, however, which will be backed up by Greece’s surrendering 50 billion euros of public assets to provide insurance for the latest loans, which will be placed in a separate Athens-based fund.
Bitcoin activity, which had been riding high on speculation of a Grexit and accompanying financial fragmentation in the Eurozone, promptly reacted with panic, with Kraken currently listing as low as US$282 per coin from a high of US$311 just minutes earlier.
The capitulation of Greek President Alexis Tsipras to further austerity, a U-turn on his previous hardline stance not to continue the financial turmoil of the past five years, is expected to cause significant schisms within his party and Greek society.
Ministers refusing to