Major cryptocurrencies encountered a substantial decline on Thursday evening, seemingly unaffected by recent macroeconomic developments.
Bitcoin, the world’s biggest cryptocurrency, has maintained a steady trading price of around $29,200 for the past 11 days.
In the midst of concerns among investors about increasing global yields, a Bank of England interest rate hike of 0.25% that revived worries of a more hawkish monetary approach in Europe, and discouraging U.S. job data that hinted at persistent inflation.
Last week, the number of Americans filing for unemployment rose to 227,000, surpassing the prior week’s numbers by 6,000 and surpassing expectations of 225,000. While this increase suggests a slight loosening of labor markets, it is important to note that jobless claims are still near their low points in 2023 and 40,000 lower than in June.
The recent ADP jobs report also indicated a strong job market that is far from cooling down. To gain more clarity on the direction of the employment market, the upcoming Non-Farm Payrolls report on Friday may provide further insights.
Currently, the global crypto market capitalization stands at $1.17 trillion, a 0.81% decrease in the last day.
The US stock market continued its downward trend for a third consecutive day, as investors on Wall Street analyzed the latest corporate earnings reports and grappled with the impact of increasing bond yields. The S&P 500 experienced a 0.25% decrease, while the Nasdaq Composite saw a slight decline of 0.1%.
“Bitcoin continues to hold onto the $29,000 level as a lot of altcoins weaken as the global bond market selloff extends,” said OANDA Senior Market Analyst Edward Moya.
He added, “Cryptos like Dogecoin, Solana, Cardano, were supposed to have greater growth potential, but they are also vulnerable to surging borrowing costs. If global bond yields continue to surge, this could spell trouble for large parts of the cryptoverse, which might see altcoins get sold and those funds might flow back into Bitcoin.”
Michael Van De Poppe noted that Bitcoin has once again retraced to the lows, resulting in a rather lackluster price action. However, the possibility of a significant drop below the recent lows, particularly around the $29,000 mark, is seemingly imminent.
Veteran Trader Tone Vays has issued a cautionary statement for BTC. He said, “Bitcoin continues to struggle and as expected I did say on the last stream that there is a high probability that Bitcoin is going to drop down to the next moving average. And I also made it very clear that if today’s candle is going to drop below yesterday’s candle that it would be time to lower the allocation to 50% because we don’t know where it’s going to go next. Bitcoin can do anything.”
Vays acknowledged the unpredictable nature of Bitcoin’s movements, asserting that it has the potential to go below the $25,000 low. “It can easily go below the $25,000 low, we have no idea. There’s still plenty of people with large amounts of Bitcoin that are selling it for God-knows-what reason…”
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Edited by Arnab Nandy