Bitcoin’s tough week just keeps getting worse.
The notoriously volatile cryptocurrency changed hands around $ 42,100 on Wednesday morning, down 2.8% from the previous 24 hours and 12% since Sunday.
This is the lowest sustained bitcoin price since early August, according to data from Coinbase.
Bitcoin’s decline comes amid a wider stock market pullback over concerns over a potential collapse of heavily-indebted Chinese developer Evergrande Group.
The Dow Jones Industrial Average had fallen about 1.9% between Friday and Tuesday, and rose more than 200 points on Wednesday in opening trades, recently to 34,126.49. The S&P 500 is down 1.8% and the Nasdaq Composite has lost 2% of its value this week.
While bitcoin evangelists argue investors should buy cryptocurrency as a gold-like ‘safe haven’ in times of market turmoil, other analysts say bitcoin’s decline this week shows rather that it is. like any other very risky asset. Gold prices, meanwhile, rose this week in response to the Evergrande crisis.
“Bitcoin’s decline today does not appear to be linked to anything specific to Bitcoin or cryptocurrencies,” said Anthony Denier, CEO of crypto trading platform Webull. “The current decline in the crypto market is due to investors adopting a risk-free strategy. ”
Denier told The Post that this model “challenges the claim that bitcoin is a safe haven.”
While bitcoin is the most popular and watched digital coin, other cryptocurrencies have had even tougher weeks.
On Wednesday morning, Ethereum was trading at $ 2,912, down 4.3% in the last 24 hours and 15.2% in the last week. Meanwhile, Cardano was targeting $ 2.11 – down 3.4% from the previous 34 hours and 12.2% in the past week.
Other factors affecting the crypto markets include the specter of a Securities and Exchange Commission crackdown by Gary Gensler and the Federal Reserve’s upcoming policy statement this afternoon. If the Fed signals that it plans to cut its bond buying program that has helped support markets during the pandemic, markets could have more problems.