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Bitcoin declined for the first time in five trading sessions, with losses accelerating after it failed to sustain the positive momentum seen following this past weekend\u2019s flash crash.<\/p>\n
The largest digital token slipped below the $50,000 level, with losses extending in afternoon trading in New York. Bitcoin was down 6% to $47,602 as of 4:06 p.m., while other digital assets also dropped.<\/p>\n
Smaller ones, including Monero and EOS, were among the hardest-hit.<\/p>\n
And on a technical basis, Bitcoin is seen by some analysts as being caught in a no man\u2019s land between different moving averages.<\/p>\n
The coin might be forming what\u2019s known as a head-and-shoulders pattern, which would be a bearish development.<\/p>\n
\u201cThe problem with crypto is, who\u2019s going to catch that falling knife?,\u201d Cate Faddis, president and CIO at Grace Capital, said in an interview on Bloomberg TV.<\/p>\n
\u201cI am very concerned about crypto — honestly, it reminds me of \u201808 with the real estate and it could spread to the entire market.\u201d<\/p>\n
\u201cPeople have to understand truly, in my opinion, what it is. It\u2019s a speculative investment,\u201d Chuck Cumello, president and chief executive officer of Essex Financial Services, said by phone.<\/p>\n
\u201cA more mainstream investment doesn\u2019t drop 20% on a weekend. That just doesn\u2019t happen.\u201d<\/p>\n
Cryptocurrencies have posted wild moves over the last few sessions, most notably over the past weekend, when many were swept up in a broader risk-off wave that also hit U.S. equities.<\/p>\n
It happened as spiking inflation is forcing central banks to tighten monetary policy, threatening to reduce the liquidity tailwind that lifted a wide range of assets. The largest crypto ended up losing as much as 21% during that decline.<\/p>\n
Brett Munster at Blockforce Capital says leverage in markets had been building for a little while ahead of the weekend crash.<\/p>\n
That\u2019s not inherently a negative development on its own — except when sudden price moves cause traders to fall below their margin requirements, a development that then results in forced liquidations. Such liquidations tend to be self-reinforcing, which \u201ccan lead to liquidation cascades,\u201d he wrote in a note.<\/p>\n
Still, many crypto fans are brushing off short-term moves and are looking at longer-term trends. Mike McGlone at Bloomberg Intelligence says the coin is a risk asset that\u2019s slowly evolving into a digital-reserve asset \u201cin a world going that way.\u201d<\/p>\n
That should have positive implications for its price, which he estimates could reach $100,000 next year.<\/p>\n
Plus, demand and adoption are rising and still appear in early days versus supply, which is declining.<\/p>\n
\u201cThe key question nearing the end of 2021 is whether Bitcoin is too hot,\u201d McGlone wrote in a note. \u201cOur chart shows the crypto fairly priced at about its upward-sloping 50-week moving average.\u201d<\/p>\n
Bitcoin declined for the first time in five trading sessions, with losses accelerating after it failed to sustain the positive momentum seen following this past weekend\u2019s flash crash.\u00a0<\/p>\n","protected":false},"author":341034,"featured_media":422942,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44696],"tags":[187,43378],"class_list":["post-426912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitcoin","tag-cryptocurrencies"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/426912"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=426912"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/426912\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/422942"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=426912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=426912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=426912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a><\/p>\n
\nNow read: Biden battles Bitcoin crimes<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"