BTC maintains $20K price level but analysts say wider economic improvements are needed for sustained growth.Read MoreFeedzy
After climbing to a weekend high of $21,868, bitcoin (BTC) retraced its gains today. The largest cryptocurrency by market capitalization was recently trading at $20,737, down 3% over the past 24 hours.
Oanda Senior Market Analyst Craig Erlam said that fizzling bitcoin rallies likely reflect downbeat sentiments in the current market, which have curbed upside momentum due to higher interest rates and widespread risk aversion.
“Traders are clearly taking a very conservative view of the space and that may not change any time soon,” Erlam said.
EToro crypto market analyst Simon Peters said that the Federal Reserve’s monetary policy amid rising inflation, such as interest rate hikes, can also affect crypto markets.
“Whether further raising of rates is priced into markets, or whether it continues to affect valuations remains to be seen,” Peters said. “Increasing recession risks, poor earnings and forward guidance from companies could further affect stock market prices. Given the recent correlations, crypto prices could also be affected.”
Ether (ETH) was down 3.6% in the past 24 hours, trading at $1,187.
The S&P 500 was down 0.1% and the Nasdaq was down 0.6%.
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