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Bitcoin (BTC) fell for a second day in a row, retreating after its price passed $48,000 earlier this week.
The bitcoin was trading at $45,945 as of press time, down 2.5% on the day. The latest price drop followed an eight-day winning streak that had brought bitcoin to a break-even point for the year, recovering from this year’s abysmal start.
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“Bullish bitcoin momentum has definitely run out of steam, and the persistent geopolitical risk will likely cap the recent rally,” said Edward Moya, a senior market analyst at Oanda. “Bitcoin seems poised to consolidate here and could be vulnerable to a drop towards the $44,500 level.”
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Although bitcoin adoption is improving and interest is growing, it takes time to drive steady long-term flows, Moya said. “The path higher will be a slower grind higher for bitcoin as many traders will also focus on the other coins that are earlier in their growth stage,” he said.
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According to Jason Deane, chief bitcoin analyst at Quantum Economics, this consolidation is positive for the market because it builds a new base for investors to “make further price discovery.”
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On Tuesday, a unit of MicroStrategy, a software company holds a large amount of bitcoin in its treasury, said it obtained a $205 million loan collateralized by bitcoin.
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Luna Foundation Guard (LFG), a nonprofit that supports decentralized networks, also resumed buying bitcoin. It announced a $272 million purchase on Wednesday.
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European Union lawmakers voted Thursday in favor of controversial measures to outlaw anonymous crypto transactions, a move the industry said would stifle innovation and invade privacy.
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The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures price index (PCE), showed annual inflation rose 6.4% in February, the Labor Department’s Bureau of Economic Analysis reported Thursday. The February pace was the highest since 1982.
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The S&P 500 was down 0.5% on Thursday. It has been on a four-day winning streak. The fall was likely due to investors’ conservative attitude as they monitor progress in discussions between Russia and Ukraine and mixed U.S. economic data.
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The Wall Street Journal reported that the bond market is suffering its worst quarter in the past 40 years.
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The West Texas Intermediate crude oil price plummeted late Wednesday and was down 5.9% on Thursday. President Joe Biden announced the largest-ever release of oil from the U.S. Strategic Petroleum Reserve to help ease high gas prices at the pump.
