Bitcoin has fallen 3.1 per cent, reaching its lowest level since May, as risk aversion and a broad sell-off in technology stocks on Wall Street impact the digital currency. The price of Bitcoin dropped below $US100,000. According to Jessica Amir, market strategist at online trading platform Moomoo, the crypto market is now in a clear bear phase. Moomoo is an online trading platform that provides investment tools and real-time market data. The platform allows users to trade stocks, ETFs, and other securities.
Amir noted softer inflows into exchange-traded funds, long-term holder selling, and reduced retail participation as factors contributing to the downturn. While Bitcoin is often considered a hedge during periods of uncertainty, its ability to act as a defensive asset has been limited by delayed economic data and fading expectations for near-term interest rate cuts.
The recent decline has seen more than $US450 billion wiped from the cryptocurrency’s value since early October. Key sources of support, including large investment funds, ETF allocators, and corporate treasuries, have retreated, removing crucial support from this year’s rally. This has triggered a new phase of market fragility, leaving investors wary as Bitcoin navigates challenging conditions.
