BTC-USD
Bitcoin briefly falls below $30K; set for worst weekly loss in months
- Bitcoin (BTC-USD) is set to notch its sharpest weekly drop since
September after slipping as much as 9% to under $30,000 in the Asia
session. It was only two weeks ago that the crypto hit $42,000, but it's
now
down 30% from that record high. Be on the lookout for more outsized
moves, as the crypto trade never sleeps - not even nights or weekends.
- *Update at 7:30 AM ET:* A modest bounce is underway (at the moment),
bringing bitcoin back to $31.6K.
- What happened? Frothy rallies are always reasons for a pullback -
especially for an asset that's 700% above its 2020 lows - as well as
increasing calls for regulation. At a U.S. Senate hearing this week,
Janet
Yellen expressed concerns that cryptos could be used to finance illegal
activities, while ECB President Christine Lagarde called for global
regulation of Bitcoin. There was also a report of so-called Bitcoin
"double-spend," where the same token is used by the same person in two
transactions, though it turned out to be bogus.
- *Quote: "*You wouldn't want to rationalize too much into a market
that's as inefficient and immature as Bitcoin, but certainly there's a
reversal in momentum," said Kyle Rodda, analyst at IG Markets. "The herd
has probably looked at this and thought it sounded scary and shocking and
it's now the time to sell."
- *Go deeper:* In a fresh research report, analysts from JPMorgan said
Bitcoin is not a hedge against market crashes. In fact, as traders use
cryptocurrencies to make even more money, it would mean that it's even
more
correlated with the rest of the market. Other news? UBS announced
cryptos "may never be able to work as actual currencies," given the
"fundamental flaw" that supply can't be reduced in most cases when demand
is slumping.
- Guggenheim Global CIO Scott Minerd said this week that he expects that
Bitcoin will retrace back to $20,000.
|Today, 6:19 AM|67 Comments
Bitcoin briefly falls below $30K; set for worst weekly loss in months
- Bitcoin (BTC-USD) is set to notch its sharpest weekly drop since
September after slipping as much as 9% to under $30,000 in the Asia
session. It was only two weeks ago that the crypto hit $42,000, but it's
now
down 30% from that record high. Be on the lookout for more outsized
moves, as the crypto trade never sleeps - not even nights or weekends.
- *Update at 7:30 AM ET:* A modest bounce is underway (at the moment),
bringing bitcoin back to $31.6K.
- What happened? Frothy rallies are always reasons for a pullback -
especially for an asset that's 700% above its 2020 lows - as well as
increasing calls for regulation. At a U.S. Senate hearing this week,
Janet
Yellen expressed concerns that cryptos could be used to finance illegal
activities, while ECB President Christine Lagarde called for global
regulation of Bitcoin. There was also a report of so-called Bitcoin
"double-spend," where the same token is used by the same person in two
transactions, though it turned out to be bogus.
- *Quote: "*You wouldn't want to rationalize too much into a market
that's as inefficient and immature as Bitcoin, but certainly there's a
reversal in momentum," said Kyle Rodda, analyst at IG Markets. "The herd
has probably looked at this and thought it sounded scary and shocking and
it's now the time to sell."
- *Go deeper:* In a fresh research report, analysts from JPMorgan said
Bitcoin is not a hedge against market crashes. In fact, as traders use
cryptocurrencies to make even more money, it would mean that it's even
more
correlated with the rest of the market. Other news? UBS announced
cryptos "may never be able to work as actual currencies," given the
"fundamental flaw" that supply can't be reduced in most cases when demand
is slumping.
- Guggenheim Global CIO Scott Minerd said this week that he expects that
Bitcoin will retrace back to $20,000.
|Today, 6:19 AM|67 Comments
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