Bitcoin and other cryptocurrencies were little changed Thursday, having traded sideways for a few days after a recent drop from near record highs. There looks to be caution across the crypto space in the lead-up to a key market catalyst on Friday.
The price of Bitcoin has risen less than 1% over the past 24 hours to $66,300, a level around which it has traded since late Monday, when the largest digital asset plunged from above $70,000. Bitcoin hit a record high near $74,000 in mid-March but has struggled to consolidate gains,…
and other cryptocurrencies were little changed Thursday, having traded sideways for a few days after a recent drop from near record highs. There looks to be caution across the crypto space in the lead-up to a key market catalyst on Friday.
The price of Bitcoin has risen less than 1% over the past 24 hours to $66,300, a level around which it has traded since late Monday, when the largest digital asset plunged from above $70,000. Bitcoin hit a record high near $74,000 in mid-March but has struggled to consolidate gains, enduring a volatile selloff in the wake of notching its peak and risking another this week.
“Bitcoin’s inability to rise is alarming,” said Alex Kuptsikevich, an analyst at broker FxPro, though he added the crypto has also been protected from more losses as “enthusiasts continue to buy back the first cryptocurrency on dips closer to $65,000.”
Declines across crypto this week have come amid wider market weakness, with the
and
falling back from their own record highs. Tokens are correlated with other risk-sensitive assets like equities, and both cryptos and stocks saw losses amid worries that persistent inflation will lead to the Federal Reserve keeping interest rates higher for longer than once thought.
While many stocks have pared losses following some encouraging economic data and supportive remarks from Fed Chairman Jerome Powell, Bitcoin has not quite rebounded to the same extent. It puts the focus squarely on Friday, with investors anticipating the U.S. jobs report for March—one of the most closely followed economic indicators and a release that could advance the narrative over the outlook for inflation and rates.
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“The cryptocurrency market’s lagging performance can easily be attributed to accumulated overbought conditions and wariness ahead of the monthly labor market report,” said Kuptsikevich. “At the same time, we regard the current weakness as consolidation within the bull market, almost excluding the risks of a long-term reversal.”
Beyond Bitcoin,
—the second-largest crypto by market value—was up less than 1% to $3,340. Smaller tokens or altcoins were weaker, with
down 1% and
slipping 2%. Memecoins fell, with
and
each down 1%.
Write to Jack Denton at jack.denton@barrons.com
Read More: Bitcoin’s ‘Inability to Rise Is Alarming.’ Just Wait for the Jobs Report.
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