Bitcoin Extends Losses Into Fifth Week as Inflation Hedge Narrative Fades
Bitcoin slid to a low of the day on Monday, as the world’s largest cryptocurrency extended losses for the fifth consecutive week.
Bitcoin was down by more than 5% at the time of writing on Monday, as the broader cryptocurrency market continues to face weeks of headwinds. Popular DeFi tokens, including Solana, Cardano, and Polkadot also extended losses.
The crypto market briefly rebounded on Friday, after US CPI data showed prices accelerated by the most in nearly 40 years, prompting some investors to delve into digital tokens as a wedge against inflation. However, bitcoin still remains about 30% below its November 10 record-high of around $69,000.
Bitcoin bulls have repeatedly insisted that digital assets— given that they are an individual asset class— could serve as an adequate hedge against volatility in traditional financial markets and macroeconomic events. Thus far, however, that has not been the case: “tt’s less of an inflation hedge and much more of a risk asset,” National Securities chief market strategist Art Hogan told Bloomberg. “So to me it’s much more of the technical move, that it failed support and had come under pressure.”
Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research