Bitcoin Recovers From $11.3K Despite Losses in European Stocks
Bitcoin has shrugged off a drop to $11,300 for the third day running, possibly buoyed by gold's recovery on Wednesday.
Bitcoin has shrugged off a drop to $11,300 for the third day running.
- The cryptocurrency dipped to $11,287 at 09:10 UTC Thursday, only to chart a quick recovery to levels around $11,500, according to CoinDesk's Bitcoin Price Index.
- Bitcoin is possibly being buoyed by the uptick in gold prices.
- At press time, the precious metal is trading at $1,935 per ounce, having risen back above $1,900 on Wednesday.
- The one-month positive correlation between bitcoin and gold recently reached record highs, supporting the store-of-value narrative surrounding the cryptocurrency.
- As such, the cryptocurrency may be less affected by losses in the European stock markets.
- Major European equity indices like Germany’s DAX and U.K.’s FTSE are down 0.30% and 1%, respectively., and the pan-European Stoxx 600 index has shed 0.4%, according to data source Investing.com.
- Seemingly, the appetite for risk has weakened over fears that the current stalemate between the U.S. Republicans and Democrats over additional fiscal stimulus could drag on for weeks.
- Bitcoin still remains vulnerable to a pullback in equities, according to Joel Kruger, a currency strategist at LMAX Digital.
- While the repeated rebound from sub-$11,300 levels is encouraging, the cryptocurrency is still trapped in an ascending triangle.
- A breakout would imply a continuation of the rally from lows near $9,000 observed in July.
- A move below the lower end would confirm a short-term bearish reversal.
- “Bitcoin has to break $12,000 and then $14,000 to get to new highs," Alex Mashinsky, CEO and founder of crypto lender Celsius, told CoinDesk.
- Upside has recently been capped by short-sellers and hedging by profitable miners, Mashinisky added.
Whale population rises
- While bitcoin is consolidating below $12,000, the number of entities (clusters of addresses controlled by the same network entity) holding at least 1,000 BTC continues to grow.
- The metric jumped to 1,874 earlier this week, the highest since August 2017, according to data source Glassnode.
- The continued rise in the so-called whale entities could be taken as a sign of investor confidence in bitcoin's long-term price prospects.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.