Cryptocurrency Analysis

[IFX_Selena]

Bitcoin falls for fifth week in row



On Monday, bitcoin weakened to the lowest levels of the day as the largest cryptocurrency's fall from an all-time high extended into a fifth consecutive week.

The digital asset posted a decline of more than 3.5% to $48,198 in New York trading. The Bloomberg Galaxy Crypto Index fell 1.2%, while popular DeFi tokens such as Solana, Cardano, and Polkadot also dropped.

Chief market strategist Mark Chandler said: "The idea that volatility would reduce as it matured hasn't really materialized. Volatile is a killer and its other supposed features, such as hedging against inflation, seem bogus."

Meanwhile, Bitcoin has been falling for the fifth week in a row.



Compared to most traditional asset classes and securities, digital tokens are traded 24 hours a day, often on loosely regulated online exchanges around the world.

Bitcoin extended gains after data showed US consumer prices increased at the fastest pace. This confirms that the coin is insurance against the ravages of inflation. On December 4, the token showed a drop of 21% overnight and a few hours later recouped about half of its losses, but it is still about 30% below the record high of almost $69,000 reached on November 10.

Proponents have long argued that bitcoin and other digital assets represent a kind of special asset class that can act as a hedge against fluctuations in other sectors of the financial market. Only 21 million Bitcoin will be put into circulation under the computer protocol that governs issuance. That figure isn't expected to be reached for several decades.

"It's less of an inflation hedge and much more of a risk asset," Art Hogan, chief markets strategist at National Securities, said.






Andrey Shevchenko
Analytical expert of InstaForex
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