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Bitcoin is vulnerable to many of the same forces as stocks, including inflation and interest rates.
Ozan Kose/AFP via Getty Images
Bitcoin
and other cryptocurrencies were little changed Thursday as digital assets continued to stagnate within a relatively depressed trading range. Cryptos could be poised, however, for a big swing before the week is over.
The price of Bitcoin has traded flat over the past 24 hours at around $16,800. The largest crypto continues to trade in a range between $16,500 and $17,000—a zone that has held for weeks now, and represents Bitcoin at depressed levels since the shock bankruptcy of FTX late last year sent prices spiraling from above $21,000.
“There isn’t much to add on the Bitcoin front. It remains in consolidation, buoyed slightly by better risk appetite in the market,” said Craig Erlam, an analyst at broker Oanda. “A move above here is possible if risk appetite remains positive but I’m not sure traders will get too carried away. Headwinds remain significant for cryptos and it may take some time for traders to get back on board.”
The beaten-down crypto market continues to largely trail stocks, with Bitcoin vulnerable to the same macro forces of inflation, interest rates, and recession risk that impacts other risk-sensitive assets. The
Dow Jones Industrial Average
and
S&P 500
were both set to edge lower on Thursday, but Friday could see a bigger move as investors look ahead to the key U.S. jobs report. The labor market data will be a critical indicator of the health of the U.S. economy in the run-up to the Federal Reserve’s next decision on monetary policy in less than a month.
Beyond Bitcoin,
Ether
—the second-largest crypto—was flat at $1,250. Smaller tokens or altcoins were also little moved, with
Cardano
and
Polygon
flitting less than 1% higher or lower. Memecoins were a standout, trading higher, with
Dogecoin
up 2% and
Shiba Inu
4% into the green.
Write to Jack Denton at jack.denton@barrons.com
