Bitcoin tentatively hovers near October lows after losing a fifth of valuation

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Bitcoin tentatively hovers near October lows after losing a fifth of valuation

On Monday’s mid-day Asia-Pacific trading hours, Bitcoin, the original cryptocurrency, has been chartering near its October lows a day after shrugging off a fifth of its valuation, as a unprecedented profit-taking wave coupled with a clutch of macro-economic concerns including a sharp slowdown in job growth, had sent shockwaves across global crypto exchanges.

Bitcoin, the most popular digital asset was last trading 1.08 per cent lower to $48,640.60, while its smaller rival Ethereum shed 0.72 per cent to 4,115.10. Nevertheless, over the weekend, Bitcoin was plunged to its lowest level since late-September, tumbling as much as 22 per cent in the session to $41,967.50 before regaining some momentum late on Saturday, while the digital asset had wrapped up 12 per cent lower to $47,495 on Saturday.

Sunday’s crypto-market remained almost dithered with investors’ cautions seemingly ramped up following prior session’s broad-based sell-off wave.

Bitcoin market cap dips 15 per cent over the weekend

According to data from crypto firm Coingecko, market cap of 11,392 bitcoins which it had tracked, fell nearly 15 per cent to $2.34 trillion.

Bitcoin notched a record $69,000 last month and stormed past a market capitalization of a whacking $3 trillion last month. Surprisingly, Saturday’s freefall in crypto assets had underscored that a growing number of digital asset traders had begun to contemplate bitcoin as a mainstream asset instead as a hedge against higher inflation, while risk-appetite for bitcoins, which usually amp up in an alignment with a plunge in US Treasury bond notes alongside the safe-haven greenback, had flabbergasted several market analysts, as bitcoin traders’ behavior had been changed histrionically followed by launch of US bitcoin futures last month.

On Friday, global equity indices beat a hasty retreat after US nonfarm payrolls had fallen far behind expectation, as concerns were mounting that the US labor market might close in on a maximum employment that in effect would prompt the US Fed to quicken its bond-tapering program.

Meanwhile, as Saturday’s crypto market had largely mimicked a broad-based downward spiral in major equity indices, a Hong Kong-based head of exchange sales of crypto exchange EQONEX, Justin d’Anethan had underscored possibilities of further declines in crypto assets over coming weeks.