Bitcoin & Crypto Move Lower Again as Analysts Search for Answers, Point to Risks to Economy
The crypto market reversed lower again on Wednesday, after some optimism earlier in the week that the bottom could be behind us. According to analysts, the outlook for crypto is now highly uncertain, with some warning that prices could fall based on historical precedence, and others pointing to risks from the broader economy.
At 10:55 UTC on Wednesday morning, bitcoin (BTC) traded at USD 20,440, down 3.8% for the past 24 hours and down 8.1% for the past 7 days. At the same time, ethereum (ETH) stood at USD 1,090, down 6% for the day and 10.3% for the week.
BTC past 30 days:
Commenting on the situation in the broader financial markets, Mohamed A. El-Erian, President of Queen’s College at Cambridge University, said on Twitter on Wednesday that markets are signaling “concerns” about global economic growth.
“This follows a notable shift in consensus recently among economists to seeing stagflation as the baseline and recession as a rising risk,” the well-known economist said.
Per a comment by the Bitfinex Market Analysts shared with Cryptonews.com, turbulence is back in the crypto space as "high inflation threatens the valuations of all risk assets," adding:
"Bitcoin, which proved to be an excellent hedge against monetary inflation is being re-rated given the onset of consumer inflation. As central banks continue to reverse previously accommodative policies, we can expect more volatility in the bitcoin price."
Commenting more specifically on the bitcoin price outlook, Chris Burniske, a partner at crypto venture capital firm Placeholder, said that he is “expecting a rough July” given that bitcoin has never remained under its 200-week moving average for two weeks or more.
The weekly bitcoin chart closed below the 200-week moving
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