Leaderboard 728×90
Leaderboard 728×90

Bitcoin Prices Are Plunging to Yearly Lows. Where Cryptos Go from Here.

Text size

Bitcoin prices are close to their lowest levels all year.

Dreamstime

Bitcoin
and other cryptocurrencies were slipping lower on Friday as digital assets were set to retest yearly lows in tandem with stocks as a selloff sweeps markets.

The price of Bitcoin fell less than 1% over the past 24 hours to $18,900. The largest crypto remains just above its recent bottom around $18,500—which is also close to its lowest level all year—and is firmly outside of the $20,000 to $25,000 range in which it has traded since mid-June.

“Recently, it seems Bitcoin would be sharply lower if Wall Street sees Treasury yields skyrocket and stocks selloff,” said Edward Moya, an analyst at broker Oanda. “Bitcoin’s bottom could be in place if throughout this market volatility it can hold the $18,000 level.”

The situation Moya described seems to be playing out. Stock indexes were on track for a fourth straight day of losses as inflation, aggressive central bank policy, and the risk of recession continue to weigh on investors and drag down the

Dow Jones Industrial Average
and

S&P 500.
Meanwhile, Treasury yields are surging, with the yield on the 2-year U.S. Treasury note jumping to a 15-year high of 4.23%.

Cryptos have shown themselves to be largely correlated to stocks amid a market downturn driven by macro pressures, but have held up in recent days as selloffs have failed to bring Bitcoin below its yearly low from mid-June. But with the Dow set to open below 30,000 points—a milestone level it first crossed in 2020—and plunge through the yearly low set in June, Bitcoin also looks vulnerable to…

..

Read More

About The Author

Related posts