Bitcoin Slides for Second Day as Analyst Warns of Dip Below $45K

The cryptocurrency slides again after eight straight days of gains.

AccessTimeIconMar 31, 2022 at 7:37 p.m. UTC
Updated Mar 31, 2022 at 7:44 p.m. UTC

Angelique is a market contributor at CoinDesk.

Bitcoin (BTC) fell for a second day in a row, retreating after its price passed $48,000 earlier this week.

The bitcoin was trading at $45,945 as of press time, down 2.5% on the day. The latest price drop followed an eight-day winning streak that had brought bitcoin to a break-even point for the year, recovering from this year's abysmal start.

  • “Bullish bitcoin momentum has definitely run out of steam, and the persistent geopolitical risk will likely cap the recent rally,” said Edward Moya, a senior market analyst at Oanda. “Bitcoin seems poised to consolidate here and could be vulnerable to a drop towards the $44,500 level.”
  • Although bitcoin adoption is improving and interest is growing, it takes time to drive steady long-term flows, Moya said. “The path higher will be a slower grind higher for bitcoin as many traders will also focus on the other coins that are earlier in their growth stage,” he said.
  • According to Jason Deane, chief bitcoin analyst at Quantum Economics, this consolidation is positive for the market because it builds a new base for investors to “make further price discovery.”
  • On Tuesday, a unit of MicroStrategy, a software company holds a large amount of bitcoin in its treasury, said it obtained a $205 million loan collateralized by bitcoin.
  • Luna Foundation Guard (LFG), a nonprofit that supports decentralized networks, also resumed buying bitcoin. It announced a $272 million purchase on Wednesday.
  • European Union lawmakers voted Thursday in favor of controversial measures to outlaw anonymous crypto transactions, a move the industry said would stifle innovation and invade privacy.
  • The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures price index (PCE), showed annual inflation rose 6.4% in February, the Labor Department's Bureau of Economic Analysis reported Thursday. The February pace was the highest since 1982.
  • The S&P 500 was down 0.5% on Thursday. It has been on a four-day winning streak. The fall was likely due to investors’ conservative attitude as they monitor progress in discussions between Russia and Ukraine and mixed U.S. economic data.
  • The Wall Street Journal reported that the bond market is suffering its worst quarter in the past 40 years.
  • The West Texas Intermediate crude oil price plummeted late Wednesday and was down 5.9% on Thursday. President Joe Biden announced the largest-ever release of oil from the U.S. Strategic Petroleum Reserve to help ease high gas prices at the pump.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

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.

CoinDesk - Unknown

Angelique is a market contributor at CoinDesk.

CoinDesk - Unknown

Angelique is a market contributor at CoinDesk.

Trending

1
CoinDesk - Unknown
Hard Times in Crypto: the Unintended Consequences of Going Public

The third and final reflection on a series of risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
2
CoinDesk - Unknown
After Bitcoin Maximalism

A Twitter debate sparks much reflection.

CoinDesk - Unknown
3
CoinDesk - Unknown
Three Arrows Paper Trail Leads to Trading Desk Obscured Via Offshore Entities

As Three Arrows Capital collapsed under market pressure, its much-lesser known trading desk, TPS Capital, remained active, sources say. But a complex ownership structure might frustrate creditors' efforts to collect.

CoinDesk - Unknown
4
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown