New York: Bitcoin Hits Two-Month Low as Risk Aversion Weighs on Cryptocurrency Market
Bitcoin, the largest digital asset by market value, has reached an almost two-month low as risk aversion takes hold in the cryptocurrency market. This comes as global government bond yields climb to the highest level in about 15 years. The decline in Bitcoin’s price is attributed to the current state of the bond market, which has made it easier for Bitcoin prices to soften.
Key Points:
– Risk aversion in the bond market is impacting Bitcoin prices.
– Edward Moya, senior market analyst at Oanda, warns that if risk aversion becomes dominant on Wall Street, Bitcoin’s bearish momentum could target the $27,200 level.
– Bitcoin fell as much as 4.3% to $27,699, extending losses after dropping below $28,000 for the first time since June 20.
– The gradual slide in Bitcoin’s price has erased about half of the gains made after BlackRock’s surprise filing for a Bitcoin ETF on June 15.
– Bitcoin’s price has declined about 2% since the end of March, following a 72% surge in the first quarter, and a 64% tumble last year due to industry scandals and bankruptcies.
Hot Take
The decline in Bitcoin’s price is a result of risk aversion in the bond market, highlighting the interconnectedness of different financial markets. As global government bond yields climb, investors are becoming more cautious, leading to a softening of Bitcoin prices. This serves as a reminder that cryptocurrency markets are not immune to broader market trends and should be considered within the context of the overall economic landscape.
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