Bitcoin (BTC) drops as analysts seek cryptocurrency fund

Bitcoin, Ethereum and other major coins traded sharply lower late on Thursday, with the global cryptocurrency market cap dropping 8.7% to $886.54 billion.

Price performance of major currencies
Coin 24 hours 7 days Price
Bitcoin BTC/USD -8.9% -31.1% $20,538.49
Ethereum ETH/USD -12.4% -39% $1,080.24
dogecoin DOGE/USD -8.9% -28.9% $0.055
Top 24-hour earners (data via CoinMarketCap)
cryptocurrency 24-hour change % (+/-) Price
USD Neutrino (USD) +2.3% $0.97
THE LION’S (LION) +1.1% $5.03
Pax Gold (PAXG) +0.75% $1,875.13

See too: How to get free encryption

Why does it matter: Fears of an impending recession hit risk assets on Thursday, with cryptocurrencies and stocks plunging into the red.

The S&P 500 and Nasdaq ended Thursday’s trading down 3.25% and 4.1%, respectively. So far, S&P 500 and Nasdaq futures are up 0.3% and 0.5%, respectively.

This week’s US rate hikes were followed by other central banks. O Swiss National Bank unexpectedly raised rates for the first time since 2007 on Thursday. The central bank raised its benchmark interest rate from negative 0.75% to negative 0.25%, Reuters reported.

bank of england it also raised interest rates by a quarter of a percentage point, although the rate hike was in line with expectations.

Senior Market Analyst at OANDA, Eduardo Moya, noted that US economic data is signaling a slowdown in activity, prompting calls for a recession from Wall Street. Moya pointed to the cooling off of construction commencement and building permits and rising mortgage costs as examples.

“Traders have gone from expecting a soft landing to fearing an impending recession. Some consumers are already behaving as if we are already in a recession and this is a worrying sign for many of the companies in the S&P 500”, said the analyst, in a note seen by Benzinga.

“Growing recession fears are dampening appetite for risky assets and this makes cryptocurrency traders remain cautious about buying Bitcoin at these lows,” Moya said.

Pseudonymous cryptocurrency analyst Kaleo pointed out that Bitcoin’s cyclical bottom was approximately 770-880 days after previous halvings. The analyst said that 766 days have passed since the last halving which took place on May 5, 2020.

Kaleo laid out Bitcoin’s supply and demand dynamics and said that the “effect of supply inflation on price steadily diminishes over time and almost appears to level off” on the topic.

Halving refers to reducing mining rewards by 50% of apex currency after each set of 210,000 blocks is mined.

Cryptocurrency Trader Justin Bennett shared a BTC-USD price chart on Twitter and said that if the apex coin pulls out of the trendline he drew and the $20,000 level, we could see capitulation.

“Still another 15-25% to go IMO. That means at least another 30% less for most altcoins,” said Bennett.

Feeling said the past week has seen the most realized losses in Bitcoin transactions since data became available in 2009. The market intelligence platform said high capitulation spikes can and will “eventually foreshadow bottoming.”

Read below: Jeffrey Gundlach Correctly Predicted That Bitcoin Would Retreat to $20K: Here’s Your Next Cryptocurrency Binding

Leave a Reply

%d bloggers like this: