NEW YORK (Dispatches) -
Bitcoin has had seven straight weeks of losses for the time first in its history amid a downturn in broader markets, stricter crypto regulations, waning retail interest and systemic risks in the crypto sector, data shows.
Bitcoin neared the $47,000 level in mid-March in a run that lasted a couple of weeks after a fall to $37,000 from November’s lifetime highs of nearly $69,000. The asset has since slid every week and could fall to as low as $20,000 if current market conditions continue.
Bitcoin, the world’s largest cryptocurrency by market capitalization, has been long positioned as a hedge against inflation, or an investment that is supposed to protect against the decreased purchasing power of currencies or other assets.
That has failed to happen so far, however, as Bitcoin is highly correlated with global markets and has traded similar to a risky technology stocks in the past few months. Meanwhile, some analysts say investors are selling Bitcoin as it advances.
“In our view, the trend of selling cryptocurrency on upside movements remains. Adding to the downside is the bleak outlook for U.S. monetary policy, where no light at the end of the tunnel with rate hikes can be seen yet,” FxPro market analyst Alex Kuptsikevich wrote in an email.
“We expect the bears not to loosen their grip in the coming weeks. In our opinion, a turnaround in sentiment may not come until the approach of the 2018 highs area near $19,600,” Kuptsikevich added.