Even after a tumultuous few days, the Bitcoin cryptocurrency is practically ending the week where it started.
Bitcoin is known for its quantity and perpetual flow. But, even after a tumultuous few days, the original cryptocurrency is ending the week in fact exactly where it started.
As of 12pm in New York, Bitcoin price is just under $39,000, right around where it closed last Friday. The positive developments on the regulatory front in the US were overwhelmed this week by fresh 40-year high inflation and continued geopolitical tensions with Russia’s invasion of Ukraine.
Yuya Hasegawa, a crypto market analyst at Bitbank Inc., said these market stresses, coupled with expensive commodity prices, could be the reason why Bitcoin is making range-bound moves. Because. will likely force Bitcoin to move within the current medium-term rage until the situation in Ukraine reaches a truce and commodity prices calm down,” Hasegawa wrote in a note.
Earlier in the week, Bitcoin staged a significant two-day rally, rallying 10% in the span of an executive order seen as validating the role of digital assets in the US financial system, with the White House committed to coordinating regulatory efforts. Timothy Spangler, a partner at law firm Dechert LLP specializing in the digital asset industry, called the imperative “recognizing that blockchain and cryptocurrency are here to stay.”
However, this gain was short-lived as uncertainty with the war in Ukraine and concerns about global growth weighed on risk assets in the second half of the week. Critics also note that the order from President Joe Biden lacks clarity about the immediate changes that change exchanges and other platforms can expect, which may have contributed to the loss of momentum. protest.
Bitcoin’s correlation with major US stock indexes has been maintained strongly in recent years. The 50-day correlation coefficient between Bitcoin and the S&P 500 rose slightly to 0.52 on Friday, out of a possible high score of 1. “As a crypto geek, Bitcoin’s correlation as an asset risk with other risky assets, said David Siemer, chief executive officer of Wave Financial Group. “Basically it doesn’t seem to be.”
