Bitcoin Price Breakout Stalls With Daily Trading Volume Also Tumbling
Bitcoin price increases have mostly stalled following two days of gains that had spurred optimism for a more sustainable rally. Bitcoin, the largest token by market value, declined as much as 1.5% on Thursday to once again trade around $20,000, a level it's been stuck around for weeks. Ether was little changed, while an index tracking the 100 largest coins also fell.
“After a two-day reminder of the potential for crypto markets to rally, momentum has taken pause,” Genesis analysts wrote in a note.
Interest in crypto has waned amid a slump in prices that's seen Bitcoin lose 70% from its all-time high of near $69,000 in November. Retail investors, in particular, have been disenchanted by the asset class. They've not been wading into the market in the same way they did during the first two pandemic years, with Google searches for the word “crypto” falling to the lowest levels in the past year.
Dogecoin on Thursday, however, was again posting some of the biggest gains among the thousands of tokens available for trading. The Shiba Inu meme coin that was initially launched as a joke has increased about 30% since Monday. Tesla Inc. CEO Elon Musk, an ardent supporter of the Doge token, which traded around 8 cents, pledged to close his acquisition of Twitter Inc. by Friday. Musk has talked about using cryptocurrency as a payment method for social-media platforms.
Meanwhile, institutional digital-asset products this month saw their lowest-ever volume in data going back to June 2020, with average daily trading volume dropping 34% to $61 million, according to CryptoCompare.
“This paints a bleak picture for crypto-based institutional products, as the macroeconomic climate still possesses much uncertainty,” a note from the researcher said.
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