- Bitcoin fell beneath US$66,000 following hawkish Federal Reserve minutes, marking its longest weekly dropping streak for the reason that 2022 bear market.
- A rising US greenback and potential price hike discussions shifted threat sentiment, inflicting reversals in crypto-related equities like Coinbase and Technique.
- The Crypto Concern and Greed Index hit a report low of 5 as Michael Burry warned that Bitcoin is behaving as a speculative asset moderately than a hedge.
Threat urge for food light late within the day because the crypto market and US shares gave again a lot of their early advance after minutes from the Federal Reserve’s January assembly struck a extra hawkish tone than anticipated.
Whereas policymakers broadly supported pausing price cuts, a number of mentioned adopting “two-sided” steerage that would depart room for price hikes if inflation stays sticky. The US greenback strengthened additional following the minutes, with the greenback index (DXY) rising to its highest stage in practically two weeks.
A firmer greenback typically weighs on threat property, and Bitcoin’s (BTC) late-session drop tracked that sample.
Bitcoin Slides Beneath US$66K
Bitcoin (BTC) slid beneath US$66,000 (AU$100,980) on Wednesday, ending the US buying and selling session close to lows and placing strain again on the underside of its current buying and selling vary.
BTC was final round US$66.2K (AU$101K), down about 2.5% over 24 hours after buying and selling close to US$68,500 (AU$104,805) in a single day.
With the decline, Bitcoin is on tempo for a fifth straight weekly loss, its longest dropping streak for the reason that 2022 bear market. Merchants are additionally watching the US$66,000 space after it held assist final week and helped push BTC above US$70,000 (AU$107,100). A decisive break may shift consideration to the early-February lows close to US$60,000 (AU$91,800).
Threat sentiment indicators remained weak because the Crypto Concern and Greed Index fell to five on Feb. 12, its lowest reading on record, reflecting broad aversion to threat.
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In the meantime, crypto-related equities reversed earlier features because the decline accelerated. Coinbase shares swung from roughly 3% increased within the morning to about 2% decrease by the afternoon. Technique, the most important company holder of BTC, fell about 3%.
It’s price noting that Investor Michael Burry warned in a Substack publish that additional Bitcoin declines may translate into significant losses for publicly listed corporations with crypto publicity and probably spill over into different markets.
He argued BTC has traded extra like a speculative asset than a hedge, contrasting its current weak point with gold and silver hitting report highs amid geopolitical tensions and foreign money issues.
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