{"id":441136,"date":"2022-04-13T07:53:55","date_gmt":"2022-04-13T05:53:55","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=441136"},"modified":"2022-04-13T07:54:53","modified_gmt":"2022-04-13T05:54:53","slug":"bitcoin-deflates-to-below-40000","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cryptocurrency\/441136-bitcoin-deflates-to-below-40000.html","title":{"rendered":"Bitcoin deflates to below $40,000"},"content":{"rendered":"

Bitcoin dropped back below $40,000 (R579,500) amid volatile price swings across financial markets, while day-trader favourite Shiba Inu jumped about 10%.<\/p>\n

Shiba Inu and three other tokens \u2014 Solana’s SOL, Polygon’s Matic and Compound’s COMP \u2014 were all listed for the first time on Robinhood Markets Inc.’s platform.<\/p>\n

Shiba, which trades at a fraction of one US cent, was the biggest gainer of the four.<\/p>\n

Bitcoin had dropped Monday to below $40,000 for the first time in more than three weeks. It was about 1.1% lower at $39,411 (R571,000) as of 15:30 in New York.<\/p>\n

Ether also turned lower again after briefly rising above $3,000 (R43,500).<\/p>\n

Bitcoin and the broader crypto market have struggled in recent weeks as the Federal Reserve began hiking rates to combat stubbornly high inflation and geopolitical turmoil hurt risk appetite.<\/p>\n

A report Tuesday showed core inflation increased less than forecast in March.<\/p>\n

Bitcoin “is still consolidating in a triangle pattern stretching back to mid-January,” said Jeffrey Halley, senior market analyst at Oanda.<\/p>\n

“The lower and upper boundaries today are $36,500 and $47,500,” he said, implying that Bitcoin was well within its range.<\/p>\n

\"\"<\/a><\/p>\n

Crypto’s correlation with US tech stocks has risen sharply in the past few weeks, suggesting investors increasingly view digital assets as vulnerable to tightening monetary conditions.<\/p>\n

By contrast, the massive stimulus the Fed flooded markets with during the Covid outbreak drove Bitcoin to a record of almost $69,000 (R999,600) in November.<\/p>\n

A break above or below those support or resistance levels could lead to an $18,000 (R261,000) move either way, Halley added.<\/p>\n

Strategists at Bespoke Investment Group point out that Bitcoin’s drubbing on Monday led to the coin collapsing through its 50-day moving average.<\/p>\n

“From a strictly technical perspective, Bitcoin isn’t trading well right now as the benchmark crypto asset has followed a similar playbook to stocks since late 2021: a major downtrend, a failure to make new highs on the rebound (and indeed, an outright rejection of its 200-DMA in BTC’s case), and now another trip below the 50-day,” they wrote in a note.<\/p>\n

Noelle Acheson, head of market insights at Genesis Global Trading, says there are two big narratives at play for Bitcoin: one is that the coin is a risk asset and it’s going to move in tandem with other riskier assets.<\/p>\n

She points to its correlation with a basket of non-profitable tech companies \u2014 a 90-day reading shows the highest correlation on record.<\/p>\n

Another narrative is that long-term investors are accumulating Bitcoin because they don’t see it as a high-volatility play \u2014 instead, they view it as a store of value or an inflation hedge.<\/p>\n

\"\"<\/a><\/p>\n

“With so much accumulation and with more and more Bitcoin being held in illiquid or longer-term addresses, whichever definition you wish to choose, there’s less available for the macro investors or for the new market participants,” she said by phone.<\/p>\n

“Anyone new coming in has to source the Bitcoin from an ever-dwindling stockpile of liquid Bitcoin \u2014 in other words, those that are moved around by traders, which is what’s keeping the volatility relatively high.”<\/p>\n

\n

Now read: Good news for Mirror Trading International scam victims<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

Bitcoin’s value dropped below $40,000 (R597,500) again, while tokens such as Shiba Inu jumped.<\/p>\n","protected":false},"author":341034,"featured_media":434760,"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":[187,191,43338,73674,72308],"class_list":["post-441136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitcoin","tag-cryptocurrency","tag-ether","tag-shiba-inu","tag-solana"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/441136"}],"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=441136"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/441136\/revisions"}],"predecessor-version":[{"id":441144,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/441136\/revisions\/441144"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/434760"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=441136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=441136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=441136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}