Other cryptocurrencies also fell on Monday as uncertainty remained in the digital asset market. Traders were looking forward to this week’s economic data to ease crypto fears, but it may not be a positive development.
Bitcoin price has fallen less than 1% in the past 24 hours to $25,700, further down from the $26,000 level where the largest digital asset has been trading around for much of the past month. It has been steadily declining and is nearing its lowest level since mid-June.
“The best thing that can be said about Bitcoin at this point is that Bitcoin’s traditional September blues (six consecutive months of decline) have not yet materialized,” said Antoni Trenchev, managing partner at cryptocurrency finance company Nexo. That’s true.” “Don’t get too comfortable with this price reluctance, as the fact that Bitcoin has been stuck at $25,800 for 10 days tells us to expect a violent breakout when it happens.” .”
In fact, crypto prices have been very passive, and this week’s lack of action signals a continuation of a trend that has been going on for several months. Bitcoin’s volatility hit an all-time low this summer, and trading volume, a barometer of investor interest in cryptocurrencies, hit a four-year low in August.
Bitcoin could move with stock market rates as traders focus on major macroeconomic news this week for potential catalysts.
Dow Jones Industrial Average
It comes on the back of key inflation figures to be released on Wednesday. The outlook for interest rates, already at a generational peak since the Federal Reserve began raising borrowing costs last year in an effort to curb inflation, remains key for risk-sensitive assets. High interest rates tend to lead to a lack of demand.
“This week’s US inflation data will indicate whether a US rate hike is likely to occur this year and will help determine how long interest rates should remain at restrictive levels. Clarity on these two key points is likely to determine whether Bitcoin can sustain above the mid-$20,000s,” Trenchiv said.
The second-largest cryptocurrency fell 2% to below $1,600. Small cryptocurrencies and altcoins are weak;
4% drop. Memcoin is relentless,
Email Jack Denton at firstname.lastname@example.org.