Bloomberg

Bitcoin’s easing volatility sends bullish signal for some

(Bloomberg) – A lull in Bitcoin’s wild swings in recent days has been seen by some as a temporary sign that the fragile digital currency may recover. The world’s largest cryptocurrency was little changed at $ 36,425 at 6:45 a.m. in New York on Tuesday, after two consecutive sessions of gains. Price fluctuations – as measured by the spread between its daily high and low – have fallen to their lowest since the start of the year, despite reports over the weekend that US financial officials are preparing to play. a more active role in regulating the crypto market. Bitcoin’s 10-day volatility has fallen to 106% from a high of almost 162% on May 24. “Despite another round of ‘negative headlines’, Bitcoin actually rose $ 2,000 over the weekend,” wrote Tom Lee, co-founder of an independent research firm. Fundstrat Global Advisors LLC in a note to clients. “I can’t help but view this as increasing the likelihood that Bitcoin has hit a low, given that bad news doesn’t create new lows.” Lee sees Bitcoin surpassing $ 125,000 before year-end, but expects a rise above $ 40,000 as a sign the digital currency has seen its lows for 2021. Bitcoin SlumpCryptocurrencies have seen a scorching few months, with Bitcoin at at some point more than halfway from its mid-April summit on concerns about US and Chinese regulation and questions about the toll of its energy needs on the environment. Elon Musk, a prominent digital currency advocate and founder of Tesla Inc., has even gone so far as to stop accepting Bitcoin as a form of payment for vehicles. “Crypto is hard work right now, the strip is a mess and Bitcoin could easily break one way or another. Chris Weston, head of research at Pepperstone Financial Pty, wrote in a note. On Thursday, Bank of Japan Governor Haruhiko Kuroda joined the chorus of central bankers casting doubt on Bitcoin after its latest wave and its latest fall. The governor of Sweden’s central bank said on Monday that Bitcoin and other cryptocurrencies are unlikely to escape regulatory oversight because Bitcoin’s questionable environmental profile has eroded the argument that the token is intended to attract more traditional investment. It is up about 20% from its May low, just above the $ 30,000 level. “As regulators pledge, it There may be some confusing headlines for the market, but engagement is a medium-term positive for institutional adoption, ”said Jonathan Cheesman, Head of Counter and Institutional Sales at Derivative Exchange. FTX cryptographic works. “There are at least some tentatively positive signs that the worst fears have not become a reality.” (Price update, adds context.) More stories like this are available at bloomberg.com Subscribe now to stay ahead with the most trusted source of business news. © 2021 Bloomberg LP



Source link

About The Author

Mark Lewis

Related Posts

Leave a Reply

Your email address will not be published.