Bitcoin Tumbles to $43K, Lowest in Three Weeks
Some analysts worry that rising bond yields might prompt the Federal Reserve to tighten historically loose monetary policy, prompting a correction in assets perceived as risky.
Feb 28, 2021 at 5:34 p.m. UTCUpdated Aug 19, 2021 at 7:34 a.m. UTC
:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindeskuat/QYDAXX327JFHNARLCE22XJD7O4.png)
Bitcoin (BTC) fell 5.4% to about $43,000, its lowest level in three weeks.
- The price move appears to be a continuation of last week's trend, when bitcoin fell amid concerns that rising U.S. Treasury bond yields might prompt the Federal Reserve to tighten monetary policy sooner rather than later to keep inflation from rising out of control. Analysts have said such a move could prompt a sell-off in risky assets, including stocks and bitcoin.
- Bitcoin failed to get a lift last week from ostensibly bullish news, including Coinbase's march toward a public stock listing and a report from JPMorgan, the biggest U.S. bank, arguing that investors could allocate 1% of their portfolios to the largest cryptocurrency.
- Bitcoin is down 24% in the seven days through Sunday, the worst weekly performance since March 2020. Prices have declined on six of the past seven days.
- Latest retreat trims bitcoin's gain in February to 31%. Year to date, the cryptocurrency is up 50%.
- Digital-asset markets were in the red across the board. Ether (ETH) hit a low of $1,305, down about 8%, while Cardano’s ADA token – a big winner for the week – shed 17% from an all-time high of $1.48 and is now trading around $1.21, according to the CoinDesk 20.
- "This is still a dip buyer's market," Matt Blom, head of sales and trading for the digital-asset exchange firm Equos, wrote on Sunday. "Profit taking has led to liquidations, which has led to more profit taking. $41,800 will be the first test" on the downside. "The next level is $38,100."
- "On the upside, a close above $45,000 will change the theme. $48,200 will be the first target to be chased down, and back above $50,000, everyone will forget last week ever happened and will be shouting for a return to the all-time highs," Blom wrote.
- "The question now for BTC in the medium-term is whether the HODLers can withstand a further drawdown and at which point the longs will start to feel the pain," cryptocurrency trading firm QCP Capital wrote Sunday in Telegram channel.
13:18
Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
05:10
Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
04:07
The first video of the year 2024
40:07
The last regression video of the year 3.67.0
STORY CONTINUES BELOW
- CoinDesk's Daniel Kuhn contributed to this report.
:format(webp)/downloads.coindesk.com/arc/failsafe/user/1x1.png)