Bitcoin
and other cryptocurrencies slipped back into a pattern of low volatility that has become familiar in recent months, a trend that has tended to usher in further declines. Support may not come until prices edge down a bit further.
The price of Bitcoin has hovered around flat over the past 24 hours at near $25,750. The largest digital asset remains below the $26,000 level that has provided support for much of the past month, with gains from a brief spike above $28,000 last week after a pro-crypto court ruling proving to be short-lived.
“Cryptocurrencies continue to trade sideways,” said Samer Hasn, an analyst at broker XS.com. “This coldness continues in cryptocurrency market trading amid low traders’ sentiment, with continued uncertainty about the future of the regulatory environment for this market, especially in the United States.”
Bitcoin has seen its lowest volatility on record in recent months, and appears to be falling back into that pattern, lacking the excitement of the stock market’s
Dow Jones Industrial Average
and
S&P 500.
But cryptos remain under pressure from the same macroeconomic backdrop that is impacting equities, with investors fretting over renewed signs of inflation and the impact on interest rates, which influence demand for risk-sensitive assets.
With Bitcoin seemingly on pause again, it’s likely to take a major macro surprise or a significant crypto catalyst to shake things up. For the time being, more weakness may be coming before any rebound can materialize.
“This could be another pause before a new step down the ladder, as we have seen since July, or a preparation for further growth. We are now leaning towards the first option,” said Alex Kuptsikevich, an analyst at broker FxPro. “We believe that buyers will remain on the sidelines until the $25,000 level is reached. This has been the critical level for the last 14 months, and we do not expect a real bull-bear battle until this level is reached.”
Beyond Bitcoin,
Ether
—the second-largest crypto—was flat at $1,630. Smaller tokens or altcoins were a bit weaker, with both
Cardano
and
Polygon
down less than 1%. Memecoins were more buoyant, with
Dogecoin
up less than 1% and
Shiba Inu
advancing 2%.
Write to Jack Denton at [email protected]
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