On Saturday, Bitcoin, the original crypto asset, had faltered again following a steep downward spiral on Friday, as risk-appetite falls sharply ahead of US Fed January 25-26 policy meet which is expected to unfurl a more aggressive rate-hike policy from the US Central Bank.
If truth is to be spoken, although, Bitcoin was once contemplated as a hedge against a higher inflation, but spiked to a record $69,000 in November over optimism of a mainstream adoption following launch of Bitcoin futures in the US with tech industry talismans like of Musk among others frequently cossetting crypto assets’ valuation while spurring up smaller digital assets such dodge coin, a latest leg of inflation-surge had promptly downsized appeals of riskier assets alongside the long-cherished cryptocurrency.
Over past couple of months, the digital currency had witnessed a cascade of wild swings amid anticipation of an ultra-hawkish Fed, while as of Sunday’s market closure, Bitcoin was trading about 4 per cent lower after bottoming to as low as $34,000 earlier in the day, dropping more than a half from its November peak.
Bitcoin pummels 4% ahead of US Fed policy meet
Citing statistics, Bitcoin was last trading about 4.0 per cent lower to a $35,000 level, while its smaller rival Ethereum dipped 6.7 per cent to $2,396 on Saturday. On a technical viewpoint, Bitcoin seems vulnerable to a sweeping pullback to $30,000 level once it will be breaching a psychological handle of $35,000, suggest analysts.
Meanwhile, addressing to further downward momentum ahead for the crypto asset, a senior market analyst at OANDA, Edward Moya said, “Crypto traders are de-risking portfolios following the bloodbath in stocks”.