Bitcoin rebound from dramatic weekend sales fizzles out

Bitcoin rebound from dramatic weekend sales fizzles out

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Bitcoin rise fell more than 2% against the US dollar around noon on Monday, trading around $ 55,230 per coin.

The dive over the weekend was a rather dramatic end to a months-long rally fueled by Coinbase’s huge IPO last week, which valued the cyrpto exchange at nearly $ 100 billion. Coinbase shares opened lower on Monday, trading down 1.8% at lunch.

Bitcoin has tumbled due to “some countries like Turkey who have lamented the ban on Bitcoin as a payment methodology and also spoken of further investigation by the US Treasury”, said Brad Bechtel, world head of FX at Jefferies.

The crypto market is also under pressure: China is creating a digital yuan and playing with the idea of ​​introducing the currency at the 2022 Beijing Winter Olympics. Meanwhile, the Bank of England has announced the creation of a central bank’s digital currency, as well as a task force to investigate its uses.

“Big Tech is also developing its own versions of cryptocurrencies,” analysts from Action Economics said in a comment to clients. “All of this represents an important future competition for bitcoin.”

At the same time, the cryptocurrency still has many bullish supporters.

“We do not think any of these factors are changing the fundamental story for Bitcoin, which continues to be supported by limited supply and the expansion of acceptance by institutional and retail investors,” said Win Thin, a global head of Brown’s currency strategy. Brothers Harriman, written in a note.

The US dollar index also fell on Monday, with the greenback falling 0.5% against its competitors.

Elsewhere in the market, shares flash red after last week’s record highs Dow (INDU) and the S&P 500 (SPX).
The Dow fell 0.5%, or more than 170 points, around lunch. The S&P decreased by 0.7%, and the Nasdaq Compound (COMP) traded 1.3% lower.

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