{"id":428194,"date":"2021-12-21T07:49:42","date_gmt":"2021-12-21T05:49:42","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=428194"},"modified":"2021-12-21T07:50:13","modified_gmt":"2021-12-21T05:50:13","slug":"bitcoin-slumps-into-year-end","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cryptocurrency\/428194-bitcoin-slumps-into-year-end.html","title":{"rendered":"Bitcoin slumps into year-end"},"content":{"rendered":"

Bitcoin fluctuated in a fairly narrow range of less than 5% with risk sentiment across global financial markets dwindling.<\/p>\n

The largest cryptocurrency by market value was little changed after declining as much as 2.5% to $45,583 on Monday in New York.<\/p>\n

It has slumped about 30% since setting a record high in early November.<\/p>\n

Ethereum edged higher, while popular DeFi tokens such as Solana, Cardano, Polkadot and Polygon also swung between gains and losses.<\/p>\n

“The macro talking points around Bitcoin as a store value, as an inflationary hedge, has definitely gained a ton of traction,” said Chris Matta, president of 3iQ Digital Assets.<\/p>\n

“And so what that means now in a risk-off environment is you’re starting to see Bitcoin maybe get a little more correlated to traditional assets.”<\/p>\n

\"\"<\/p>\n

Central banks globally are prioritizing the fight against elevated inflation by tightening monetary settings, while also keeping a wary eye on the impact of omicron.<\/p>\n

That backdrop has investors questioning whether so-called risk assets such as cryptocurrencies and technology shares are due for a rougher patch after surging from pandemic lows.<\/p>\n

Bitcoin is also facing some price levels that technical analysis watch for signs of future direction.<\/p>\n

The digital currency is sitting at its 55-week simple moving average. The token has typically bounced higher the past several times it reached the level.<\/p>\n

\"\"<\/p>\n

Katie Stockton, founder of Fairlead Strategies, is eyeing $44,200 as a support level for the cryptocurrency.<\/p>\n

If that level is broken, “important long-term support at the bottom boundary of the weekly cloud will likely be tested, near $37K,” she said.<\/p>\n

Bitcoin dropped for five consecutive weeks as measured by the seven days ended Friday.<\/p>\n

Unlike most traditional asset classes and securities, digital tokens trade around the clock, often on lightly regulated online exchanges worldwide.<\/p>\n

The risk of an “imminent reduction in liquidity” as the Federal Reserve pares back its asset-purchasing program will weigh on risky assets, particularly those that don’t generate cash flow, including Bitcoin, according to Jay Hatfield, chief executive and founder of Infrastructure Capital Management.<\/p>\n

“When there’s a lack of liquidity, the riskiest” assets get hit the most, he said.<\/p>\n

\n

Now read: Cryptocurrency value grew by R24 trillion in 2021<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

Bitcoin is on a downward slope heading into 2022.<\/p>\n","protected":false},"author":341034,"featured_media":422942,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[44696],"tags":[187,48238,75252,191,75248,75250,72308],"class_list":["post-428194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitcoin","tag-cardano","tag-chris-matta","tag-cryptocurrency","tag-polkadot","tag-polygon","tag-solana"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/428194"}],"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=428194"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/428194\/revisions"}],"predecessor-version":[{"id":428200,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/428194\/revisions\/428200"}],"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=428194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=428194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=428194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}