Cryptocurrency Bitcoin’s Memorable Week Has Yet To Be Turned Into Profits

Bitcoin is known for its perpetual ebb and flow. But even after an eventful past few days, the original cryptocurrency ends the week practically in the same place it started.

At noon in New York, Bitcoin’s price was just under $39,000, right around where it ended last Friday. Bullish developments on the US regulatory front this week were offset by another 40-year inflation, and ongoing geopolitical tensions over Russia’s invasion of Ukraine.

This market stress, coupled with expensive commodity prices, is likely why Bitcoin is making range-bound moves, said Yuya Hasegawa, a crypto market analyst, at Bitbank Inc. will likely force Bitcoin to move within the current medium-term anger until the situation in Ukraine progresses towards a ceasefire and commodity prices calm down,” Hasegawa wrote in a note.

Earlier in the week, Bitcoin staged a memorable two-day rally, gaining 10% over the period as an executive order was seen as validating the role of digital assets in the US financial system, with the White House pledging to slow down regulatory efforts. coordinate. Timothy Spangler, a partner at law firm Dechert LLP that specializes in the digital asset industry, called the order “recognition that blockchain and crypto are here to stay.”

The gains proved short-lived, however, as uncertainty over the war in Ukraine and concerns about global growth weighed on risky assets in the second half of the week. Critics had also noted that President Joe Biden’s order was unclear about the immediate changes that exchanges and other platforms can expect, possibly adding to the rally’s lost momentum.

Bitcoin’s correlation to major US stock indices has remained strong in recent years. A 50-day correlation coefficient between Bitcoin and the S&P 500 rose slightly to 0.52 on Friday, from a high possible score of 1. annoys me a bit,” said David Siemer, chief executive officer of Wave Financial Group. “It fundamentally doesn’t seem like it should.”