Bitcoin stock and other cryptocurrencies were trading at lower prices on Monday, despite an apparent improvement in optimism within the digital asset industry. Because this week will be packed with important macroeconomic news, the price of cryptocurrencies may be volatile in the days to come.
Bitcoin Stock Price
The price of Bitcoin has dropped by 2% over the previous 24 hours, bringing it down to $16,200. However, this is still significantly higher than the two-year lows at $15,500 that was recorded earlier this month during the trough of panic selling. The abrupt and shocking failure of the cryptocurrency exchange FTX continues to linger over the market and the sector as a whole. The full impact of its bankruptcy and any potential knock-on consequences are likely yet unclear.
“Bitcoin had a tough week as rumors continue to float that more major ruptures are in the pipeline following the downfall of FTX,” said Naeem Aslam, an analyst at broker AvaTrade. “Bitcoin had a tough week as rumors continue to float that more major ruptures are in the pipeline following the downfall of FTX.” “However, traders are finding some comfort in the news that People like [Binance CEO Changpeng Zhao] are dedicating more money to the ecosystem,” Aslam added. He was referring to plans from the world’s largest cryptocurrency exchange to form a cryptocurrency industry rescue fund of at least one billion dollars.
On Monday, the Crypto Fear and Greed Index increased to 28, which indicates Fear; nevertheless, this represents a steady improvement from late last week, when the index experienced two consecutive readings of 20, which indicates Extreme Fear, for the first time since concerns began to be raised concerning FTX.
Despite this, trading volumes on cryptocurrency exchanges remain dismal, and traditional investors and Wall Street are merely increasing their wagers against any recovery in Bitcoin values. Because there hasn’t been any noteworthy news regarding the cryptocurrency market or sector, digital assets will likely continue to model themselves after stock prices for the time being.
This year, Bitcoin’s price has grown highly associated with the Dow Jones Industrial Average and the S&P 500 indices, despite the challenging macro backdrop of high inflation and rising interest rates, reducing the demand for risky assets. On Monday, cryptocurrency prices followed lower stock prices, and a slew of critical economic data, including the U.S. jobs, report due on Friday, is due in the days ahead. This data will almost certainly move the significant indexes in one direction or another, and Bitcoin will likely follow suit.
According to Yuya Hasegawa, an analyst at the cryptocurrency exchange Bitbank, “Bitcoin may struggle to pick a direction until those numbers come in and stay at the mid-to-low-$16,000s for a couple of days.” Hasegawa referred to data such as the core personal consumption expenditures index, which is the preferred inflation metric of the Federal Reserve and is due on Thursday, and the U.S. jobs report for November, which is due on Friday. Both reports are scheduled to
Ether, the second-largest cryptocurrency, lost 4% of its value, dropping to over $1,150, amid indications that a prominent holder, also known as a “whale,” may be getting ready to sell the token. According to the blockchain researcher Lookonchain, in recent days, an Ether whale has transferred more than 70,000 tokens worth around $85 million to Binance. This action is a move that may imply that the holder is getting ready to liquidate their holdings on the exchange.
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