The crypto market was once again rocked yesterday as Bitcoin slipped below the crucial $20,000 level. But it has managed a brief gain in the last 24 hours as the volatile market entered a new month – July.
At the time of writing, Bitcoin was trading at $20,105. It is up 0.22% in the 24 hours. The most favored cryptocurrency has lost 4.68% of its value in the last seven days. Ethereum, the second-largest crypto in terms of market cap, is holding above the $1,000 mark – changing hands at $1,080. However, it’s down by 1% in the last 24 hours. Presently, investor sentiment for Bitcoin or more broadly crypto assets, like stocks, is down. It’s considered an investible asset. As such, investors are likely to stay away from cryptocurrencies as it’s a risky investments in the face of uncertainty.
Charts show that Bitcoin has already been rocked by four days of discouraging economic indicators. The brief slip to the $19,000 mark came as a surprise to analysts who has been expecting the popular cryptocurrency to break its support. Edward Moya, Oanda Senior Market Analyst, highlighted that negative crypto headlines have been nonstop. He said there have been concerns that the regulatory environment would be somewhat harsh going forward. This has kept sentiment down.
Mark Lurie, the CEO of Shipyard Software, sees a deeper significance in the decline. He says its connected to the US central bank’s increasing single-mindedness to calm inflation. Jerome Powell, the Federal Reserve Chair, earlier this week reiterated his commitment to monetary hawkishness. He also acknowledged the possibility of recession as money supplies tighten.