*By Jacqueline Corba*
Bitcoin plummeted this week, falling below the $6,000 mark. The major cryptocurrencies are facing a steep decline in trading volume this summer, a far cry from the action in December when Bitcoin hit an all time [high of $19,783.] (http://fortune.com/2017/12/17/bitcoin-record-high-short-of-20000/)
Harbor Peak Senior Advisor Paul Johnson says #Fomo is gone, and [institutional investors remain on the sidelines.] (https://www.nytimes.com/2018/06/27/business/dealbook/fund-managers-bitcoin.html) These two factors, Johnson said, are driving the drop in demand.
"Until you solve the custody problem big institutions can't play," said Johnson. "Ultimately if it's going to be an exchange protocol of currency you have to have transactional demand."
Inconvertable paper money, known as fiat, is insured. But cryptocurrency is not, so if someone loses their Bitcoin there's no hope for recovery. That's the biggest hurdle keeping institutional investment away.
When Bitcoin fell below the $6,000 mark over the weekend, Ethereum also plummeted down to $434. Litecoin has traded below $100 for two straight weeks.
"When Bitcoin price goes down no one is buying the lesser stuff," derivatives trader Tone Vays said Thursday on Cheddar's show The CryptoCraze. "When Bitcoin goes up people feel richer so they are able to gamble more on these alternatives, and when Bitcoin goes down you have a lot less net worth so people are less likely to gamble."
Johnson agrees with the trend, but offers a different view.
"Almost all cryptos are priced to bitcoin because that's the most prevalent exchange medium, and not fiat," said Johnson. "So when Bitcoin goes down, almost everything else should go down almost by definition."
But, what goes down will eventually go back up, argues Vays who remains bullish on Bitcoin.
"I do see Bitcoin as being that one and only public Blockchain in the future," said Vays.
For the full segment, [click here.](https://cheddar.com/videos/bitcoins-ripple-effect-facebooks-change-of-heart)
Nestlé has dismissed its CEO Laurent Freixe after an investigation into an undisclosed relationship with a direct subordinate. The company announced on Monday that the dismissal was effective immediately. An investigation found that Freixe violated Nestlé’s code of conduct. He had been CEO for a year. Philipp Navratil, a longtime Nestlé executive, will replace him. Chairman Paul Bulcke stated that the decision was necessary to uphold the company’s values and governance. Navratil began his career with Nestlé in 2001 and has held various roles, including CEO of Nestlé's Nespresso division since 2024.
Kraft Heinz is splitting into two companies a decade after they joined in a massive merger that created one of the biggest food companies on the planet. One of the companies will include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese. The other will include brands like Oscar Mayer, Kraft Singles and Lunchables. When the company formed in 2015 it wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz's net revenue has fallen every year since 2020.
