Bitcoin
Other cryptocurrencies also fell below key levels on Monday, with declines likely due to a lack of liquidity over the Easter long weekend. This hardly seems like another correction on the scale that has hit cryptocurrencies in recent weeks.
Bitcoin's price fell 1% in the past 24 hours to about $69,800, rapidly falling from more than $71,000 to a bottom below $68,000 in a matter of hours. The largest digital asset continues to hold the psychologically important $70,000 level, well below its all-time high near $74,000 in mid-March.
Alex Kupczykevich, an analyst at broker FxPro, said the recent decline was “likely explained by reduced liquidity due to the Easter weekend.” “As a post-growth consolidation, we still see a decline to just below $69,000, which is an important step before another breakthrough. But we are already seeing some false starts. Therefore, it is better to wait for confirmation that Bitcoin has the ability to grow above $71,500.”
Bitcoin needs a catalyst to firmly get over the $70,000 hump or reach new all-time highs. After reaching all-time highs in March, the cryptocurrency suffered a week of volatile declines amid signs of profit-taking. Although the token sold off rapidly on Monday, the magnitude was much more modest and this does not appear to be a new correction.
Support for the digital asset continues to come from the Spot Bitcoin Exchange Traded Fund (ETF), which was approved by U.S. regulators in January and sparked renewed investor interest in cryptocurrencies and multibillion-dollar inflows. brought waves. Bitcoin's halving is also approaching this month, with the issuance of new tokens set to be halved, tightening supply as demand rises, supporting the price.
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Bitcoin’s correlation with other risk-sensitive assets, namely stocks, means broader market catalysts are also important.of
Dow Jones Industrial Average
and
S&P500
Stock indexes themselves are at record highs, facing a busy week of economic data that could raise expectations about the pace of the Federal Reserve's interest rate cuts. This macro outlook is important for Bitcoin.
Beyond Bitcoin
ether
The second-largest cryptocurrency by market capitalization fell 2% to $3,550. Small tokens and altcoins are weak;
cardano
and
polygon
3% down each. Meme coins were even more mixed.
dogecoin
1% increase;
Shiba Inu
5% off.
Email Jack Denton at jack.denton@barrons.com.
