Bitcoin
Other cryptocurrencies also fell on Thursday, further falling from a week earlier's decline that rocked digital assets and stocks alike. Traders are bracing for further declines, but there are important catalysts looming that could push prices higher.
Bitcoin price has fallen 4% in the past 24 hours to $61,100 and has recently fallen to $60,800, well below its 50-day moving average of over $67,000 and in technical markets. showing signs of weakness. The largest digital asset was worth nearly $70,000, not far from its all-time high until last Friday, before geopolitical tensions over Iran's drone attack on Israel and renewed concerns over inflation sent Bitcoin plummeting. It remained at .
S&P500.
Antoni Trenchev, co-founder of crypto financier Nexo, said: “While geopolitical risks, inflation and uncertainty around monetary policy come to the fore, demand for ETFs has cooled, and Bitcoin is expected to undergo a halving. “We're hitting a brick wall.” “These factors could keep Bitcoin in check until the halving cycle is properly executed. A move to the low $50,000 range is not impossible.”
Bitcoin has fallen in line with the stock market as geopolitical tensions and strong US economic data raise expectations that inflationary pressures will persist and the Federal Reserve may refrain from cutting interest rates soon. exposed to headwinds. Demand for spot Bitcoin exchange-traded funds (ETFs), which were approved in the U.S. in January and sparked a new wave of investor interest in cryptocurrencies, has also cooled slightly.
Nevertheless, crypto traders are bullish on Bitcoin's prospects due to the so-called halving scheduled for Friday or Saturday. Halving is a programmatic monetary policy change for Bitcoin that cuts the issuance of new tokens in half, limiting supply and raising the price as long as demand remains stable or increases.
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“Just three months after US ETFs sparked a wave of beginner buying, Bitcoin’s fourth halving cut miners’ rewards in half. will lead to $100,000 in Bitcoin,” Trenchiv said.
Trenchev is not the only one demanding $100,000 for Bitcoin as a result of the halving, even if it doesn't rise immediately.
“In previous cycles, people would have lost interest until the issuance cuts really kicked in and triggered a related rally months after the fact,” said Philip Shoemaker, executive director of decentralized verification group Identity.com. says Mr. “Until then, I think we'll see a similar situation, meaning more chop and more volatility. But by the end of the year, I expect Bitcoin to reach around $100,000 or so.”
Beyond Bitcoin
ether
The second-largest cryptocurrency by market value fell 4%, falling below the key $3,000 level. Small tokens are also weak;
Solana
7% slide,
ripple
4% retreat. Meme coins fall;
dogecoin
decreased by 8%,
Shiba Inu
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3% off.
Email Jack Denton at jack.denton@barrons.com.
