For the week, bitcoin is down 14% and through its 50-day moving average.
Sydney: Bitcoin fell to a one-month low on Friday and is topping out its worst week in six months as traders have taken profits from a protracted rally and are spooked by expectations that creditors of the collapsed cryptocurrency exchange Mt Gox can liquidate their payments.
The largest cryptocurrency by market value, bitcoin fell 1.6% at $55,980 in mid-Asian trading, its lowest since mid-October and 20% below its highs. last week’s record.
“Selling pressure was fairly regular until the token found support at around $53,000,” said Matthew Dibb, managing director of Singapore-based crypto asset management firm Stack Funds. la.
For the week, bitcoin is down 14% and through its 50-day moving average. It is up more than 90% this year.
Dibb said there has been profit taking and concerns about more selling after a Tokyo court signed off on a plan to repay creditors of Mt Gox, a cryptocurrency exchange that collapsed in 2014 after losing half a billion dollars in bitcoin.
“Those affected will receive a large amount of bitcoin, likely in Q1 or Q2 2022. This makes the market fear more in the long term,” he said, with expectations. that those creditors are likely to be sellers.
Ether, the second-largest cryptocurrency by market value, stabilized near a three-week low at $4,014 on Friday but lost 14% on a weekly basis.
Both ether and bitcoin also appear to be affected as the mood in the global markets has been cautious in recent days amid concerns about economic growth, interest rates and inflation.
“Bitcoin’s long-term outlook remains upbeat,” said OANDA analyst Edward Moya.
“But the situation over the next few months will be difficult as institutional investors consider whether the Fed will be forced to raise interest rates sooner and trigger a wide-ranging sell-off in risk assets including bitcoin. .”
(This story has not been edited by NDTV staff and was automatically generated from the feed provided.)
