Bitcoin bounces back above $30,000 but sees its worst ever losing streak amid chaos in crypto markets
Bitcoin bounced back yesterday but was still on course for a record seventh consecutive weekly loss amid chaos in the crypto-currency markets.
On another day of turmoil, the digital coin rose back above $30,000 having hit a 16-month low of $25,000 on Thursday.
But it was still heading for a seventh successive weekly loss in what would be its worst ever run – leaving it down 55 per cent since a peak of close to $68,000 in November.
Losing its shine?: Bitcoin rose back above $30,000 having hit a 16-month low of $25,000 on Thursday
‘I don’t think the worst is over,’ said Scottie Siu, director of Axion Global Asset Management, a Hong Kong firm that runs a crypto index fund. ‘I think there is more downside in the coming days.’
Crypto-currencies have been swept up in a broad sell-off of risky investments amid worries about inflation and rising interest rates.
The rout accelerated this week as a number of ‘stablecoins’ supposed to be pegged to the value of the dollar faltered, sparking panic in the market for other digital assets.
Luna, another large digital currency, plummeted by more than 99 per cent in a day this week.
Ratings agency Fitch said there could be ‘significant negative repercussions’ for the crypto-currencies if investors lose confidence in stablecoins.
Myron Jobson, a senior personal finance analyst at Interactive Investor, said: ‘What direction the price of bitcoin and other cryptos will follow is anyone’s guess, but they remain a swashbuckling ride for investors.
‘The recent crypto slide is a timely reminder that shows that just because something has perceived value, it doesn’t mean it can’t end up massively overvalued and in a bubble.’