Bitcoin
and other cryptocurrencies edged lower Friday, with digital assets continuing a pattern of stagnant trading that seems to be unnerving market participants. Even optimism about a major catalyst may be fading.
The price of Bitcoin has fallen less than 1% over the past 24 hours to $29,350. The largest crypto continues to languish below the psychologically important $30,000 level, which had provided support for months before Bitcoin dropped below it in late July.
“After finally breaking down from the seemingly infinite $30,000 to $31,000 range, Bitcoin now holds precariously just below the significant $30,000 mark,” said Mike Crosbie, CEO of digital asset exchange Blackfridge. “There is still a chance that [Bitcoin] tries an upward break of this level again but this lessens with each passing day.”
Bitcoin volatility is at historic lows, with cryptos showing less excitement than the stock market’s
Dow Jones Industrial Average
and
S&P 500
in recent days. Analysts wonder whether the current lull in crypto trading is just a rut—perhaps before another run higher—or a more permanent shift. Either way, if the current dynamics continue it’s possible that even what might be seen as a big win for crypto won’t change much.
Optimism over regulators approving a milestone spot Bitcoin exchange-traded fund supported prices in June, when financial giant
BlackRock
(ticker: BLK) filed for such a fund, but that buoyancy has since faded. While some traders have pinned hopes of more gains on ETF approvals, Bitcoin’s trading lull raises the prospect that approval may be priced in and investors are set up for disappointment.
“Greatly decreased volumes and bullish action constantly being reverted may indicate that the market has already priced in potential effects of rumored ETFs,” said Blackfridge’s Crosbie. “We may be setting up for a classic ‘Buy the rumor, sell the news’ type of situation.”
Beyond Bitcoin,
Ether
—the second-largest crypto—was down less than 1% to below $1,850. Smaller cryptos, or altcoins, also were weaker, with both
Cardano
and
Polygon
down near 1%. Memecoins were more upbeat, with
Dogecoin
above flat and
Shiba Inu
jumping 2%.
Write to Jack Denton at jack.denton@barrons.com
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