Crypto Market Indicators Suggest Near-Term Consolidation, Breather For Bitcoin
NDTV
Market participants cited profit-taking after bitcoin hit those highs, its increasing sensitivity to global inflation expectations and regulatory headwinds as behind the week's declines.
Cryptocurrency market indicators such as average bitcoin funding rates, inflows into crypto investment products and the ratio of old-to-new coins being sold suggest a near-term consolidation for the sector and lower odds of a year-end rally bitcoin bulls are predicting.
Bitcoin rose 1.6 per cent on Friday to $57,850.56 but was on track for weekly losses of over 11 per cent, its worst week since May. It is 16 per cent lower than its Nov. 10 record high of $69,000. Ether, the second-biggest cryptocurrency by market value, was 14 per cent off of its peak at $4,202.45.
Market participants cited profit-taking after bitcoin hit those highs, its increasing sensitivity to global inflation expectations and regulatory headwinds as behind the week's declines.
Concerns that creditors of Mt Gox, a crypto exchange that collapsed in 2014, could liquidate their bitcoin-denominated repayments also weighed on sentiment.
