Bitcoin (BTC-USD) is falling to six-week trading lows Monday morning as investors pull out of stocks in the wake of aggressive Fed tightening.
Ethereum (ETH-USD -2.6%) is also extending losses to its lowest since mid-March, standing at $2.86K, as all three major U.S. stock market indices point to a weaker opening.
On a technical basis, bitcoin (BTC-USD -1.9%) is dipping to $38.8K and it’s moving further away from its 200-day simple moving average, recently changing hands at $44.1K. But it still remains rangebound in a nearly four-month channel. Meanwhile, “Bitcoin looks to be breaking a pivotal minor two-month trend on Friday’s pullback that likely causes weakness down to test January lows,” said Fundstrat Technical Strategist Mark Newton, as reported by Bloomberg. He added that if BTC falls through $36.3K, that “should lead to a full retest of $32,950 without too much trouble.”
While markets price in a 50-basis point rate hike at the Fed’s upcoming May meeting, the percentage of Bitcoin’s in supply that hasn’t moved in one year is at an all-time high, digital asset broker GlobalBlock wrote in a note. In other words, “Bitcoin is being distributed from those who see it as a risk-on asset, to long-term holders who have strong conviction in Bitcoin’s long term potential,” the note said.
Note that BTC’s maximum coin supply is capped at 21M. Out of that total, 19M have already been mined.
Major cryptos falling the most include: solana (SOL-USD -3.9%), cardano (ADA-USD -3.1%), avalanche (AVAX-USD -4.1%), polkadot (DOT-USD -5.7%), NEAR protocol (NEAR-USD -7.7%), cosmos (ATOM-USD -6.5%), uniswap (UNI-USD -4.8%), algorand (ALGO-USD -4.7%) and ethereum classic (ETC-USD -4.9%). Both dogecoin (DOGE-USD +4.7%) and apecoin (APE-USD +6.6%) are trading in the green.
Unsurprisingly, crypto-related stocks are sliding in premarket trading, with the largest percentage decliners being: Bitfarms (BITF) -2.1%, Bakkt (BKKT) -4.1%, Bit Digital (BTBT) -1.7%, CleanSpark (CLSK) -1%, Coinbase Global (COIN) -1.3%, HIVE Blockahin (HIVE) -1.8% and Marathon Digital (MARA) -1.3%.
Previously, (April 23) Morgan Stanley said that Bitcoin’s use as a currency may just be getting started.