Bitcoin below $48,000 as cryptocurrencies limp

by Jonathan Adams
cryptocurrencies limp

It has fallen 3% this week and has slumped 17.9% over the past month, according to CoinDesk

Bitcoin was holding below $48,000 as cryptocurrencies have limped into the end of the year.

Bitcoin, the world’s largest cryptocurrency, was at $47,498, rising slightly over the past 24 hours, according to CoinDesk. It has fallen 3% this week and has slumped 17.9% over the past month, according to CoinDesk.

Bitcoin’s all-time high is $68,790, set on Nov. 10. According to Bloomberg, Bitcoin was on course for its worst monthly drop since May.

CoinDesk noted that Bitcoin’s slump of about 7% on Tuesday came about as the market headed into monthly options expiration.

Former Twitter CEO Jack Dorsey has said that cryptocurrency Bitcoin will replace the US dollar. Dorsey has been a big supporter of Bitcoin. He is also the co-founder and CEO of financial services company Block, formerly known as Square Inc.

Of late, crypto prices have risen on the back of comments from billionaire Elon Musk and Ark Investment Management LLC’s Cathie Wood. In late July, Elon Musk said Tesla was ‘most likely’ to start accepting Bitcoin as payment again.

Ethereum, the second-largest digital currency, was falling 0.6% on Wednesday to $3,745. It has declined 5.7% this week and 13.6% over the past month.

While demand for the two largest cryptocurrencies has waned into the end of the year, amid rising interest rates, tighter liquidity in financial markets and shifting regulatory stances, they both have posted sizable gains in 2021. Bitcoin has risen 64% year to date, while Ethereum has soared 411%.

Cryptocurrency-linked stocks also have been taking it on the chin. Marathon Digital (MARA) fell 10.8% on Tuesday and was down a further 1.5% on Wednesday; Riot Blockchain (RIOT) declined 8.5% on Tuesday and was down 2.1% on Wednesday. Coinbase (COIN), the crypto trading platform, fell 6.7% on Tuesday and was losing another 3.1% on Wednesday to $253.16.

Coinbase last week was chosen as one of Oppenheimer’s top picks for 2022, with analysts rating the stock at Outperform with a $444 price target.

This article is for information purposes only.
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