Bitcoin tumbles to nearly US$30,000
Bitcoin has continued to fall after its nose dive performance over the weekend.
BTC is currently trading at just above US$31,000, having nearly sunk below US$30,000 in the past 24 hours. Less than a month ago market commentators were debating BTC’s trading levels that were then sitting around the US$40,000, questioning what global inflationary pressure would do to crypto markets. One thing is for sure, inflation and the central bank interest rate hikes that it has spurred have not been kind to crypto markets.
Inflation can be the canary in the coal mine when it comes to financial markets, sometimes indicating a bleak future outlook and high likelihood of recession. But perhaps BTC’s continuing downward trajectory is the indicator traders should be looking to? As the coin struggles to maintain any upward momentum is it a sign that recession is on its way? In the past six months Bitcoin’s value has halved. Although Bitcoin maxi’s and crypto natives stay buoyant, many say that now isn’t a time for large investment in risk on assets like Bitcoin and other cryptos.
However, for the contrarians amongst us that take a long term view on crypto investing, while big crypto traders are de-risking their books, and pushing down prices, now might be the time to buy. It is certainly fair for a crypto investor that bought Bitcoin last year, when the price was US$60,000, to be having second thoughts about the merits of the asset class, but in these troubled times they may be wise in asking themselves is buy and hold the best approach.