Bitcoin
and other cryptocurrencies fell slightly on Tuesday, but remained near recent peaks as the digital asset's recent rally took a lull. Chipmaker Nvidia's gains this week could reinject risk sentiment into the market and boost the token along with the stock.
Bitcoin price has fallen by 1% in the past 24 hours, dropping below $51,800. It previously traded above $52,000 and near recent highs of $52,800, the highest price for the largest digital asset since early December 2021. Bitcoin has breached the psychologically important $50,000 mark. It reached that level for the first time in over two years last week, successfully consolidating its rally above that mark, but so far the push to near $53,000 has been short-lived.
“Such sideways consolidation is characteristic of a strong bull market, as opposed to a corrective pullback during a good rally,” said Alex Kupczykevich, an analyst at broker FxPro.
Bitcoin has doubled in price over the past six months, driven by multiple factors. These include the US approval of a spot Bitcoin exchange-traded fund (ETF), which crypto bulls hope will bring about a new wave of investor interest. Bitcoin's so-called halving, a change in the cryptocurrency's programmatic monetary policy that will limit token supply, is also looming in the coming months and is highly anticipated.
Stock market jubilation has also helped cryptocurrencies, which have been shown to be correlated with stocks and risk sentiment more broadly.of
Dow Jones Industrial Average
and
S&P500
remains near all-time highs, and tech stocks are falling as investor enthusiasm for artificial intelligence continues. Next up is AI chip maker Nvidia's quarterly results.
,
Wednesday's results are likely to move the overall stock market and impact risk sentiment.
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Beyond Bitcoin
ether
The second-largest cryptocurrency fell less than 1% to $2,900. Small tokens and altcoins are weak;
cardano
down 1.5%,
polygon
Down 4%. Meme coins were quieter.
dogecoin
and
Shiba Inu
1% down each.
Email Jack Denton at jack.denton@barrons.com.
