(Bloomberg) — Bitcoin capped its first weekly decline since Donald Trump’s election victory, paring initial losses, but many smaller tokens turned higher on the day.
Most Read Articles on Bloomberg
The largest digital asset was down 1.2% at about $93,962 as of 4:39 p.m. in New York, after falling 2.8% early Monday. This is a drop of about 13% from the previous record set on December 17th. Broader crypto market indicators, including smaller tokens such as Ether and meme crowd favorite Dogecoin, reversed losses and rose more than 1%. Dogecoin itself rose nearly 4%.
Cryptocurrency markets have been swinging between optimism about a more relaxed regulatory environment under the incoming Trump administration and worries that persistently high inflation will slow the pace of rate cuts by the Federal Reserve. Monday’s recovery comes as Senate Majority Leader John Thune, a Republican, announced the selection of incoming crypto-friendly Sen. Bernie Moreno, R-Ohio, to the chamber’s Banking Committee. This coincided with the announcement of the mission.
Bitcoin snapped off its first weekly decline since Trump’s election, dropping 7.5% in the seven days through Sunday. The Federal Reserve cut interest rates for the third time in a row on Wednesday, signaling it would slow the pace of monetary easing next year to curb inflation, sending global stock prices plummeting. The hawkish shift also dampened the speculative spirit unleashed on the cryptocurrency market by President Trump’s promise of friendly regulation and support for a national Bitcoin stockpile. Sean McNulty, trading director at liquidity provider Alberos Markets, said last week that record outflows from U.S. exchange-traded funds that invest directly in Bitcoin will weigh on prices in the short term. Ta.
“Bitcoin should remain at the $90,000 level through the end of the year, but anything below that could trigger further liquidations,” McNulty said. “There was some downside hedging,” he added. Strikes of $75,000 to $80,000 will be held in February and March.
David Rowant, head of research at crypto prime broker Falcon “This is a high scenario.”
“The illiquid environment could lead to increased volatility towards the end of the year, especially as December 27th is likely to be the largest option expiration event in crypto history,” Rawant said.
Meanwhile, leveraged Bitcoin proxy MicroStrategy, a former dot-com era software maker, announced its largest cryptocurrency purchase for the seventh consecutive week. MicroStrategy purchased 5,262 Bitcoin tokens from Dec. 16 to Dec. 22 at an average price of approximately $106,662, according to a filing with the U.S. Securities and Exchange Commission on Monday. This was the lowest number of Bitcoins purchased by the company in recent weeks, as the price of the token reached a new high of over $108,000 during the purchase period.
(Update price.)
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
/cdn.vox-cdn.com/uploads/chorus_asset/file/25803928/2180591145.jpg?w=150&resize=150,150&ssl=1 "The FTC orders Marriott and Starwood to beef up their data security")