Bitcoin (BTC) Drops But Stays Above $60,000 Still

BTC-Slumps-but-Holds-above-$60,000
  • 5 PM EST, BTC is trading slightly lower, down half a percent at $61,050.
  • European Central Bank to keep interest rates where they are, move Bitcoin back $60,000.
  • Much of the attention was drawn away from Bitcoin by specific alt.

On Thursday, the overall market capitalization of all cryptocurrencies together reached a record high of $2.7 billion, although this did not affect the price of bitcoin.

In the early afternoon Eastern Standard Time, Bitcoin is trading marginally lower, down half a percent at $61,050.

The Federal Reserve and the Bank of England decided this week to keep interest rates near zero percent, which is a significant development in the fight against inflation. These developments, however, did not affect Bitcoin, which has been viewed as a hedge against inflation even though inflation is continuing to climb or at the very least remains at elevated levels. Even though gold, which some feel is a superior tool to hedge versus inflation, did not react immediately, it did so after several days and traded lower on the day of the announcement.

When the European Central Bank announced last week that interest rates would remain at their current levels, Bitcoin surged back above $60,000 for the first time. They feel that this announcement, which came after Bitcoin had fallen below $60k in the previous trading period, may have made the retracement from $67,000 shallower than they had anticipated. As a result, even though we haven’t reached a new all-time high, Bitcoin building a base over $60k is still highly favorable.

Although they might yet see a return to $54,000 next week, this represents far less of a risk than a new all-time high, possibly later this month. Analysts still believe that the next all-time high will be in the range of $70-$75k.

Specific alternative cryptocurrencies and Ethereum have drawn a lot of attention away from Bitcoin this week, with the latter reaching new highs. However, it is crucial to recall that these currencies only rose in value in the weeks following Bitcoin’s all-time high and that any further rise in value from them will almost certainly coincide with Bitcoin’s acceptance.

Recommended for You