Photographer: Andrey Rudakov / Bloomberg
Photographer: Andrey Rudakov / Bloomberg
Bitcoin resumed its decline on Wednesday as digital currency moves into its worst week in March last year, calling into question the outlook for the cryptocurrency boom.
Bitcoin fell as much as 6.8% to about $ 32,359 before calculating some losses, according to a composite price compiled by Bloomberg. The largest cryptocurrency hit a record low of $ 42,000 on January 8 before falling to a low of about $ 30,300. The Bloomberg Galaxy Crypto index fell by up to 7.1%.
The price changes evoke memories of the Bitcoin bubble of December 2017, which was followed by a rapid collapse. It also tests recent narratives, such as the argument that Bitcoin is maturing in a hedge against the weakness of the dollar and the risk of inflation and attracts long-term investors.
An alternative perspective is that quick money seeking quick gains has helped drive Bitcoin quadrupling in the last year, leaving the rally at risk for these investors to withdraw as the momentum wanes.
“Taking profits from the table after an asset – any asset, not just Bitcoin – doubles in value within three weeks is completely understandable,” said Julius de Kempenaer, a senior technical analyst at StockCharts.
Bitcoin could arrive Long-term $ 146,000, as it competes with gold as an asset class, if digital asset fluctuations moderate enough to attract more institutional investors, JPMorgan Chase & Co. strategists said this month. They also showed signs of foam that could lead to a short-term withdrawal.