Bitcoin Price Trades Below $24,000 and Ether’s Rally Fades

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Bitcoin rose this week on signs of slowing US inflation.

Photo by OZAN KOSE/AFP via Getty Images

Bitcoin
traded below $24,000 on Friday to end a strong week for the world’s largest cryptocurrency.

Bitcoin fell 3.7% to $23,734 in the past 24 hours, according to CoinDesk. It rose this week, boosted by data that showed inflation had cooled in the United States, which in turn relieved the Federal Reserve as it raised interest rates to slow the economy. .

Bitcoin and its peers should, in theory, trade independently of traditional finance, but they have been found to be highly correlated with other risk-sensitive assets like stocks. Wall Street rose this week as investors began to believe the Fed might be able to stage a soft landing for the US economy.

Craig Erlam, senior market analyst at Oanda, said the relatively quiet weekend for Bitcoin may not be good news for the crypto in the near term “as it may encourage some profit taking over the weekend. -end”.

He said it was interesting that at current levels there is little momentum in Bitcoin’s rallies, “which is going to make $25,000 very difficult to top.”

Erlam asked: “Is this a sign that we are seeing some profit taking or that the correction has run its course and further downside pressures are on the horizon?”

Ether,
the second-largest token, fell 2.3% to $1,875 in the past 24 hours. The token that underpins the Ethereum blockchain network saw strong gains from Thursday after passing its final test ahead of a major upgrade.

The planned network upgrade, known as “The Merge,” was supposed to take place on September 19, but Ethereum developers said they anticipate the upgrade on September 15 or 16.

Write to Joe Woelfel at [email protected]

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