Bitcoin
Other cryptocurrencies fell below key levels on Monday in a sell-off that may be due to a lack of liquidity during the long Easter holiday. It does not appear to be another correction in the scale that has plagued cryptocurrencies in recent weeks.
Bitcoin's price fell 1% over the past 24 hours to around $69,800, rapidly falling from over $71,000 to a low of under $68,000 in a matter of hours. The largest digital asset still holds the psychologically important level of $70,000, which is firmly below its record high near $74,000 reached in mid-March.
Alex Kubtsikevich, an analyst at brokerage FxPro, said the recent sell-off can likely be explained by lower liquidity due to the Easter holiday. “We still see declines to just under $69,000 as post-growth support – an important stage before a new advance. However, we have already seen several false starts, so it is best to wait for confirmation that Bitcoin has… the potential to grow.” Above $71,500.”
Bitcoin needs a catalyst to get over the hump around $70,000 or hit a record high. After peaking in March, cryptocurrencies suffered a week-long choppy sell-off amid signs of profit-taking. While tokens sold off quickly on Monday, the scale was more moderate, and this does not appear to be another correction.
Digital assets continue to be supported by Bitcoin spot trading funds (ETFs), which were approved by US regulators in January and have heralded a new wave of investor interest in cryptocurrencies and multi-billion dollar inflows. A Bitcoin halving is also on the horizon this month, with the issuance of new tokens set to be halved, tightening supply and supporting prices at a time of rising demand.
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Bitcoin's correlation with other risk-sensitive assets – namely stocks – means that broader market catalysts are also key. the
Dow Jones Industrial Average
And
Standard & Poor's 500
Stock indexes themselves have reached record highs and face a busy week of economic data that could boost expectations about the pace of interest rate cuts from the Federal Reserve. This macro view is important for Bitcoin.
Beyond Bitcoin,
ether
— the second-largest cryptocurrency by market cap — fell 2% to $3,550. Small tokens or altcoins were weaker
Cardano
And
ribbed
Down 3% for each. Memecoins were more mixed
Dogecoin
Up to 1% and
Shiba Inu
5% precipitation.
Write to Jack Denton at jack.denton@barrons.com
