Bitcoin’s worst losing streak
Bitcoin Recovers Above $30,000 But Posts Record Seventh Straight Weekly Loss Amid Crypto Markets Chaos
Bitcoin rallied yesterday but was still on track for a record seventh straight weekly loss amid chaos in crypto markets.
In another day of turmoil, the digital currency climbed back above $30,000 after hitting a 16-month low of $25,000 on Thursday.
But it was still headed for a seventh straight weekly loss in what would be its worst losing streak ever, leaving it down 55 percent from a peak near $68,000 in November.
Losing its shine?: In another day of turmoil, the digital currency climbed back above $30,000 after hitting a 16-month low of $25,000 on Thursday.
“I don’t think the worst is over,” said Scottie Siu, director of Axion Global Asset Management, a Hong Kong firm that runs a crypto index fund. “I think there are more snags in the next few days.”
Cryptocurrencies have been dragged into a broad sell-off of risky investments amid concerns about inflation and rising interest rates.
The rout was accelerated this week as a number of ‘stablecoins’ that were reportedly pegged to the value of the dollar faltered, sending the market into a panic in other digital assets.
Luna, another big digital currency, plunged more than 99 percent in one day this week.
Ratings agency Fitch said there could be “significant negative repercussions” for cryptocurrencies if investors lose confidence in stablecoins.
Myron Jobson, senior personal finance analyst at Interactive Investor, said: “The direction bitcoin and other cryptocurrencies will go in price is anyone’s guess, but they remain a cloak-and-dagger journey for investors.”
“The recent crypto slide is a timely reminder that just because something has perceived value doesn’t mean it can’t end up hugely overvalued and in a bubble.”