Enquires@newsofbitcoin.com
Bitcoin and other cryptocurrencies steadied Wednesday after days of declines for digital assets, which have fallen alongside stocks. While crypto has calmed for now, tokens could still risk a bigger correction from recent highs.
The price of Bitcoin was hovering around flat over the past 24 hours at above $66,400, having traded as low as around $64,500 in its recent trough. The largest crypto hit a record high near $74,000 in mid-March but has since struggled to consolidate around those levels, enduring one volatile correction…
and other cryptocurrencies steadied Wednesday after days of declines for digital assets, which have fallen alongside stocks. While crypto has calmed for now, tokens could still risk a bigger correction from recent highs.
The price of Bitcoin was hovering around flat over the past 24 hours at above $66,400, having traded as low as around $64,500 in its recent trough. The largest crypto hit a record high near $74,000 in mid-March but has since struggled to consolidate around those levels, enduring one volatile correction and recovery and risking another after Bitcoin plunged from above $70,000 over the weekend. While prices have recovered from their recent lows, cryptos still risk more declines.
“Technically, this sink looks like an invitation for a deeper dive,” said Alex Kuptsikevich, an analyst at broker FxPro. “Bitcoin fell below $65,000 on Tuesday night and Wednesday morning, where buyers supported it … This support has not yet translated into a strong rebound … should the sell-off deepen, our focus will be on the ability to hold above $63,000.”
Bitcoin’s weakness has come in tandem with declines in the stock market, where the
and
have dropped from their own all-time highs this week. Cryptos are correlated with equities and similarly sensitive to investor risk sentiment, which has taken a hit this week amid shifting expectations over when and by how much the Federal Reserve could cut interest rates this year.
“Cryptocurrencies have sold off along with other risk assets,” said Kuptsikevich. “U.S. Treasury yields have risen to their highest levels in months. Markets are scaling back expectations for Fed easing this year after strong economic data.”
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Beyond Bitcoin,
—the second-largest crypto by market cap—fell less than 1% to $3,330. Smaller tokens were little moved, with
and
up less than 1% each. Memecoins were rising, with
up 1% and
higher by 3%.
Write to Jack Denton at jack.denton@barrons.com
Read More: Bitcoin Halts Its Decline. Why Cryptos Risk a Bigger Correction.
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