Yahoo Finance UK Bitcoin fails to recover from weekend crash Read full article
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EPGFX EPGIX Brian McGleenon 23 August 2022, 5:38 pm · 3-min read In this article:
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The price of Bitcoin took a plunge this weekend.Reuters/Dado Ruvic/Illustration Bitcoin has shown no sign of being resuscitated after its shock weekend drop, the largest in two months.
Over the weekend, the entire c ryptocurrency market fell close to $1tn, cutting short a rally that began in early August.
On Friday, bitcoin ( BTC-USD ) plunged from $22,760 to a Saturday low of $20,954.
Read more: Crypto live prices
Since then the world’s preeminent cryptocurrency has been fluctuating between $21,500 and $21,000.
Cryptocurrency traders are following traditional markets which are currently exhibiting risk-off activity after more hawkish forecasts by the US Federal Reserve.
Bitcoin ( BTC-USD ) is now trading at $21,413, down almost 12% in the last seven days, as of the time of writing.
Second place asset ethereum ( ETH-USD ) is down almost 16% in one week, to $1,609, as of the time of writing.
Bitcoin and ethereum ( ETH-USD ) have revealed their tendency to follow tech stocks, with the Nasdaq ( ^IXIC ) falling by 2.5% on Monday, now at 12,381 before markets open in New York.
Read more: Crypto: What is Ethereum’s Soulbound token?
The current crash comes shortly after the world’s largest digital coin surpassed the $25,000 level in mid-August.
But bitcoin ( BTC-USD ) is still far below its level of nearing $50k per coin in March and November 2021’s $68k all-time high.
Peter Schiff, an exponent of gold as an inflation hedge, told his followers on Friday, that “there’s still time to sell, better late than never!”
The lead strategist at Euro Pacific Capital ( EPGFX ) tweeted that bitcoin’s “pattern remains very bearish”.
He added: “At a minimum support will be tested below $10K, look out below!”
Referring to bitcoin’s November all-time high, Schiff spoke to Kitco news and said: “Personally I think bitcoin topped out at $69,000,” he said.
“I don’t think it’s going to reach another high.”
Read more: UK inflation hits 10.1% as food prices hit 40-year high
Bitcoin ( BTC-USD ) has failed to live up to its as an inflation hedge, with Skybridge Capital CEO Anthony Scaramucci stating that the digital asset needs much more proliferation before it can act as an inflation hedge.
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Speaking on CNBC’s Squawk Box on Monday, Scaramucci said bitcoin was still too much of “an early adopting technical asset”.
He added that it would need to be held in around a billion wallets before it would begin to act as a hedge against inflation.
He said: “Until you get into the billion, billion-plus zone, I don’t think you’re going to see bitcoin as an inflation hedge as it’s still an early adopting technical asset.”
The estimated number of bitcoin wallets globally has been placed at approximately 200 million.
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