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Reuters
- Bitcoin slipped on Friday as investors took profits from the volatile trading week.
- The cryptocurrency fell 11%, to $ 34,409.04, to intraday lows.
- The slide ends Bitcoin’s second most volatile week in the past three years. Choppy trading saw the token climb all the way to $ 41,440 and drop to $ 30,324.
- The week also saw more and more voices dismissing cryptocurrency as a dangerous market bubble.
- Billionaire investor Mark Cuban compared it to internet stocks of the dot-com era, and European Central Bank President Christine Lagarde called it a “highly speculative asset that conducted a fun business.” .
- Watch Live Bitcoin Trading Here.
Bitcoin fell on Friday as less volatile exchanges pushed prices back below $ 35,000 after clearing $ 40,000 the day before.
B The cryptocurrency fell 11%, to $ 34,409.04, to intraday lows. The jerky price action of the week saw the cryptocurrency rise as high as $ 41,440 and drop to $ 30,324. The market scum was the second most volatile week in the past three years.
After crossing its 2017 high in December and doubling to nearly $ 42,000 in the new year, bitcoin has fluctuated as investors assess securing profits against the lack of additional gains. The token is currently trading around 25% higher since the start of the year, but around 11% below its high in early January.
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A growing chorus of voices felt that the crypto trade was a bubble throughout the week, comparing it to the dot-com boom of the 1990s. Billionaire entrepreneur Mark Cuban said the token had traded “just like the Internet stock market bubble” which reached extreme valuations before collapsing in the early 2000s.
European Central Bank President Christine Lagarde, who sees a digital euro become reality in the next two years, said this week that Bitcoin is not a currency but a “highly speculative asset that has conducted fun business.”
Strategists have also dampened some of the hype surrounding the Bitcoin rally.
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“Wall Street drools over the word ‘crypto’ every time they see it without understanding anything at all. It’s no surprise that Wall Street does, because anything that shows an exponential rise in prices would spark their interest.” , Michael Every, said a global strategist at Rabobank.
Technical analysts said the price was fluctuating between support levels that could pave the way for record highs or a much deeper pullback. Bitcoin’s relative strength index – which tracks momentum over the past 14 days – only recently fell below levels, indicating the token was overbought.
“While $ 35,000 can provide an interesting test, the only level that really matters is $ 30,000. A break in that amount could trigger a much sharper correction,” said Craig Erlam, senior market analyst at Oanda Europe. .
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