- Bitcoin anticipates its first back-to-back daily dip in 2023.
- BTC declined 2.5%, trading at $22,380.
- Other cryptocurrencies including Ether, Cardano, and Avalanche were also in red.
Following a disappointing earnings projection from technological heavyweight Microsoft that dampened overall investor mood, reports have stated that Bitcoin is on the verge of seeing its first back-to-back daily decline since 2023 beginning.
The data analyzed by reports revealed that the token declined as much as 2.5% and was trading at roughly US $22,380 as of 9.26 am Singapore time, today. This followed after it dipped during US business hours. Several smaller coins, such as Ether, Cardano, and Avalanche, also saw negative returns.
Moreover, reports have mentioned that investments including digital assets soared across the board at the beginning of 2023 on wagers that central banks would curtail or even stop raising interest rates.
However, the upbeat attitude is susceptible to changes. For instance, it might change if the Federal Reserve fights back against dovish expectations in the current battle against inflation during its policy meeting the following week.
According to Tony Sycamore, a market analyst at IG Australia, the disappointment over Microsoft’s predictions spilled over into cryptocurrency, which is still rather highly associated with technology companies. He added:
With risk assets, it’s almost been like trying to hold a ball underwater so far this year,” he said. “The market is now having second thoughts about how much further to push them.
The 36% increase in Bitcoin this month was likely fueled by a rush of short covering, according to Hayden Hughes, CEO of social trading platform Alpha Impact. However, Hughes said the short covering may now be slowing down.
Additionally, For Bitcoin, there was strong resistance, noted Katie Stockton, CEO of Fairlead Strategies, a research company that specializes in technical analysis. Stockton also highlighted that August 2022 marked the last time the token reached that level.
This past week, Stockton declared that she was “neutral intermediate-term” towards Bitcoin due to the re-emergence of overbought conditions.