To cap off an intense week for the most prominent cryptocurrency in the world, Bitcoin traded below $24,000 on Friday.
According to CoinDesk, Bitcoin has decreased 2.3% in the last day to $23,956. It has increased by about 4% over the previous week, benefiting from statistics showing that U.S. inflation has been slowing. This has relieved some pressure on the Federal Reserve as it increases interest rates to slow the economy.
In principle, Bitcoin and its competitors should trade separately from traditional financial markets. Several Stock Trading Apps are available in the market, but actual data shows they are closely associated with other risky assets like equities. As investors started to accept the idea that the Fed may be able to orchestrate a smooth landing for the American economy, Wall Street has increased this week.
According to Craig Erlam, senior market analyst at Oanda, the relatively peaceful week’s conclusion for Bitcoin “may promote some profit-taking into the weekend,” which would be bad for the cryptocurrency in the near term.
It’s noteworthy, he said, because Bitcoin rallies are now losing steam, “which will make $25,000 extremely tough to overcome.”
Is there a hint that some profit-taking is occurring or that the correction has ended and further downward pressure is approaching?
The second-largest cryptocurrency, EtherETHEUR -0.46%, has increased 0.3% in the last day to $1,892. After passing its last test before a significant upgrade, the token supporting the Ethereum blockchain network surged strongly on Thursday. According to CoinDesk, it has increased by around 13% in the last week. Initially scheduled for September 19, “The Merge,” the network update, is now likely to happen on September 15 or 16. This is according to Ethereum engineers.