February 9, 2023

Bitcoin prices have skyrocketed this year.

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Bitcoin and other cryptocurrencies were little moved on Thursday.

The digital asset space has been battered in the wake of the shocking and devastating bankruptcy of crypto exchange FTX earlier this month. A holiday-shortened week for traditional US markets means any sort of rebound is unlikely to materialize anytime soon.

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The bitcoin price was essentially unchanged over the past 24-hours at $16,500. The largest cryptocurrency is now trading for less than a quarter of its all-time high of $69,000 a year ago, and is down nearly 20% in the weeks following the FTX failure and concerns that its collapse could have far-reaching consequences. Can be ,

“Trading volumes have fallen, and the crypto market continues to face headwinds,” said Vetel Lund, an analyst at crypto firm Arcane Research.

Sentiment in the digital asset world improved with the Crypto Fear and Greed Index rising to 22 from a recent low of 20 earlier this week – but on Thursday the index reverted to 20 indicating “extreme fear”. have arrived.

Meanwhile, several metrics suggest that traditional investors are betting bullish against any kind of recovery for bitcoin, while crypto traders themselves are shying away from making big bets. At least one analyst sees it as more likely that bitcoin hits a new two-year low of $10,000 than a rebound to $20,000 — a level above which it will remain for months before its latest leg down. used to change hands regularly.

US stock markets are closed on Thursday for Thanksgiving and trading will be light for Black Friday, meaning any improvement in broad investor sentiment is unlikely to boost crypto.

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While the correlation between crypto and stocks has faded amid recent volatility, digital assets have largely followed the S&P 500 and Dow Jones Industrial Average this year around amid a macro backdrop of high inflation and rising interest rates. With crypto conditions grim, token traders expect digital assets linked to equities to boom as investor sentiment improves Optimism that the worst The tightening of the financial conditions of the Federal Reserve is done.

Beyond bitcoin, ether—the second-largest crypto—increased less than 2% to just shy of $1,200. Smaller cryptos or altcoins were weaker, with Cardano and Polygon down around 2% each. Memecoin was similarly downbeat, with Dogecoin and Shiba Inu both shedding 1%.

Write to Jack Denton at [email protected]