Crypto market looking for direction after recent swings
06:34, 28 May 2021
The cryptocurrency market has been rather quiet in recent days after last week’s hype generated by bitcoin’s crash to half the all-time record set in mid-April. Most of the top crypto assets have been trading in a narrow range over the past three days waiting for momentum to build up for a clearer trend.
The price of bitcoin (BTC), the leading cryptocurrency by market capitalisation, dipped vigorously below $37,000 on Friday morning (06:30 UTC), trading down over 4% in the last 24 hours. It’s the third time since Monday’s rebound that bitcoin went under $37,000. On the previous two occasions, it rebounded to more than $40,000.
However, traders may have reasons to be worried if the price doesn’t recover by the end of the day as the last two weekends have been hard for cryptos.
Bitcoin’s next powerful backer?
After American hedge fund billionaire Ray Dalio revealed on Monday that he has “some bitcoin” and spoke about his preference for cryptocurrencies against bonds, another Wall Street legend revealed he is contemplating a bitcoin investment.
US activist investor Carl Icahn told Bloomberg that he is looking to invest in crypto “in a big way”, which could mean a billion dollars or more. Cryptos are “here to stay in one form or another”, Ichan said, but he warned that not all the current digital assets will survive.
The world’s billionaires increasingly see bitcoin and crypto assets in general as an instrument to hedge against inflation as the central banks look set to continue their relaxed monetary policies in order to support economic recovery after the pandemic.
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