Bitcoin and other cryptocurrencies stabilized on Wednesday after days of decline for the digital asset, which fell along with stocks. Although crypto has calmed down for now, the token is still at risk of further correction from recent highs.
Bitcoin price has been flat over the past 24 hours above $66,400, with recent lows trading around $64,500. The largest cryptocurrency hit a record high of nearly $74,000 in mid-March, but has since struggled to consolidate around that level and endured one volatile correction. .
Bitcoin
Other cryptocurrencies were firmer on Wednesday after several days of declines in digital assets, which fell along with stocks. Although crypto has calmed down for now, the token is still at risk of further correction from recent highs.
Bitcoin price has been flat over the past 24 hours above $66,400, with recent lows trading around $64,500. The largest cryptocurrency hit a record high near $74,000 in mid-March, but has since struggled to consolidate around that level, with Bitcoin plummeting above $70,000 over the weekend. After that, we endure a period of unstable adjustment and recovery, and then take risks again. Although prices have recovered from recent lows, the cryptocurrency is still at risk of further decline.
“Technically, this sink looks like an invitation to dive deeper,” said Alex Kupczykevich, an analyst at broker FxPro. “Bitcoin fell below $65,000 on Tuesday night and Wednesday morning, but buyers were supporting it…This support has not translated into a strong rebound yet…If the decline deepens further, our focus will be on It’s about whether we can sustain it above $63,000.”
Bitcoin's weakness is occurring in parallel with the stock market decline.
Dow Jones Industrial Average
and
S&P500
It has fallen from its all-time high this week. Cryptocurrencies are correlated with stocks and similarly sensitive to investors' risk sentiment, but this week risk sentiment has changed amid changing expectations about when and by how much the U.S. Federal Reserve will cut interest rates this year. has been hit hard.
“Cryptocurrencies were sold off along with other risk assets,” Kupczykevich said. “U.S. Treasury yields have risen to their highest levels in months. Markets are tempering expectations that the Fed will ease this year after strong economic data.”
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Beyond Bitcoin
ether
The second-largest cryptocurrency by market capitalization fell less than 1% to $3,330. Small tokens hardly move;
cardano
and
polygon
an increase of less than 1% each. Meme coins are on the rise;
dogecoin
1% increase;
Shiba Inu
3% more expensive.
Email Jack Denton at jack.denton@barrons.com.
