Bitcoin Falls 7% as Investors Prepare for Another Bouncy Weekend | Business and economic news
Digital tokens took a hit on Friday as a growing list of central bankers expressed concerns about their usefulness.
Bitcoin fell 7% to nearly $ 35,500, reminiscent of levels seen in the crypto collapse last week as traders brace for further volatility over the long weekend.
Digital token prices took a hit when Bank of Japan Governor Haruhiko Kuroda joined a growing list of central bankers voicing skepticism about the industry’s usefulness in the real world.
Now retail players are expected to dominate upcoming trading sessions on generally low trading volumes.
“Looking at the turmoil in the crypto market, there is a chance that we will see another hectic weekend on Bitcoin and other cryptocurrencies,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
Prices climbed 10% last Saturday, then plunged 18% the next day.
“Most of the trading is speculative and the volatility is extraordinarily high,” Kuroda said in an interview Thursday. “It’s hardly used as a means of payment.”
All the same, Bitcoin was little changed for the week, after a massive selloff of 44% from April’s high of $ 63,000.
More generally, the threat of tighter regulation continues to weigh on sentiment in the crypto market. China and Iran have cracked down on Bitcoin mining operations for using too much electricity and there is speculation that US policymakers could increase financial oversight given the growing market size and intense volatility.
Technically, the key marker is $ 30,000, said Ozkardeskaya of Swissquote. A break below that level would be “yet another assertion of a broad bear market,” she said.
“Volatility has eased this week, but it probably won’t last for a long weekend,” wrote Edward Moya, senior market analyst at Oanda Corp., in a note. “Bitcoin’s consolidation phase is expected to continue, but if the $ 37,000 level breaks the momentum, it could get very fast.”