Bitcoin (BTC) was mostly traded sideways on Friday, after a sharp overnight drop to as low as $ 44,181, timed with a strong liquidation of technology stocks and bonds.
To date, the largest cryptocurrency has been changing hands at $ 47,921, down 6.2% over the past 24 hours, based on CoinDesk’s Bitcoin Price Index. Since 0h UTC (19h ET), the price has risen 1.6%.
On the hourly chart, bitcoin was trading between its 10- and 50-hour moving averages, a side signal for market technicians.
“The recent increase in US Treasury long-term yields, particularly at the long end of the curve, such as 10-year US Treasury yields, is indicative of higher growth and inflation expectations, which is starting to put pressure on valuations of technology, ”Kevin Kelly, co-founder of cryptography research firm Delphi Digital, said. “Market volatility has also started to increase again, which has historically coincided with bitcoin’s short-term weakness.”
“If we continue to see stocks go down, this could be problematic for cryptography and result in another setback,” said Andrew Tu, executive at quantitative trading firm Efficient Frontier.
As reported by CoinDesk, deeper drops in bitcoin prices, if any, may be temporary, with blockchain data showing large traders accumulating cryptocurrency in the falls. The institutional-focused Coinbase Pro exchange has recorded outflows of 25,000 BTC in the past 24 hours, seen by analysts as a sign of persistent demand from U.S. institutional investors, according to South Korea’s blockchain data company CryptoQuant.