RIYAD: Bitcoin and Ether, the world’s two largest cryptocurrencies, were weak on Wednesday and at near critical levels that analysts say could mean further weakness if they fall further.
While profit taking after the massive price hike earlier in the month emerged as the most important factor, analysts pointed to other reasons behind the more cautious sentiment, such as Bitcoin’s blockchain upgrade. US inflation rose higher last weekend and China’s latest directive to its state-owned companies not to mine cryptocurrency.
Bitcoin has doubled in value since January. “Its correction could become severe if it drops to $ 58,000,” said Craig Erlam, senior market analyst at online broker Oanda.
“It gives the impression that we could see some messy two-way action, and it wouldn’t be surprising to see 68,000 peaking on the upside, 57,000 on the downside,” added Chris Weston, head of research at the brokerage. Pepperstone in Melbourne.
Another sign of the world’s growing fascination with blockchain and cryptocurrency, the Staples Center sports and entertainment arena in downtown Los Angeles has announced that it will be renamed Crypto.com Arena under a deal. naming rights with the Singapore-based platform Crypto.com.
âNonetheless, the decline may signal the start of a further decline and the longer we stay at the current price level, the greater the possibility of an even larger pullback. Investors should be on the lookout for any negative macroeconomic news. which could cause markets to lose confidence in the continuation of the uptrend and trigger a larger correction, âsaid Mikkel Morch, executive director and risk management of crypto and digital asset hedge fund ARK36.
He added, “If the $ 59,000 support is breached, Bitcoin may drop to $ 49,000 where another area of ââstrong support is found.”
Meanwhile, Ruud Feltkamp, ââCEO of the cloud-based automated cryptocurrency trading bot Cryptohopper, said: âAs previously expected, we will see this type of volatility, with crypto rises and falls. change, in the coming months. But it presents interesting business opportunities. You can see quite quickly where the price will rebound and when that happens the price jumps a bit. For me, as a trader, this makes crypto the most fun market to trade. “
Another ETF for Bitcoin Futures
A third U.S. bitcoin futures exchange-traded fund has entered the market, Bloomberg reported.
The VanEck Bitcoin Strategy ETF (ticker XBTF) launched on Tuesday, about a month after the ProShares Bitcoin Strategy (BITO) fund became the first of its kind to start trading and debut with record demand.
While the ProShares fund absorbed $ 1.1 billion in just two days – the fastest ever achieved by the ETF – that pace of growth has slowed considerably.
Assets have held between $ 1.3 billion and $ 1.4 billion in recent weeks, according to Bloomberg.
Meanwhile, the second fund of its kind, Valkyrie’s Bitcoin Strategy ETF (BTF), has only raised $ 60 million despite launching three days after ProShares.
Bitcoin, the main cryptocurrency in international trade, traded lower on Wednesday, falling 1.08% to $ 60,206 at 5:24 p.m. Riyadh time.
Ether, the second most traded cryptocurrency, traded at $ 4,221, down 2.40%, according to data from Coindesk.