Head of Firmwide ResearchGalaxy
Hear Alex Thorn share his take on “Bitcoin and Inflation: It’s Complicated” at Consensus 2023.
Bitcoin dropped below $28,000 at one point Thursday as the largest cryptocurrency by market capitalization continued its two-day slump.
Bitcoin (BTC) was recently trading at around $28,325, down 2.7% over the past 24 hours, according to CoinDesk market data. But the BTC/USD trading pair on the Coinbase exchange fell to $27,991 shortly before U.S. equity markets closed but later rebounded, TradingView data showed.
(TradingView)
Edward Moya, senior market analyst for foreign exchange market maker Oanda, noted in an email that bitcoin’s recent decline came after Coinbase CEO Brian Armstrong indicated that the crypto exchange giant might leave the U.S.
“Coinbase was able to secure a license to operate in Bermuda, in what is being considered a part of their global push,” Moya wrote. “If Coinbase leaves the U.S. market, a lot of U.S. traders will be gone because they probably won’t feel confident trading on decentralized exchanges, which means the global crypto market will shrink significantly.”
He added: “Bitcoin will struggle here until we have any regulatory clarity which means prices seem poised to drift lower.”
Ether (ETH), the second-largest cryptocurrency by market value, recently dropped nearly a percentage point to change hands at around $1,948. ETH fell to $1,917 at one point, its lowest perch in a week.
BTC and ETH were down 7% and 3%, respectively, for the past seven days.
Most other major tokens were trading in the red, with both payments-focused cryptocurrency XRP and Litecoin (LTC) recently down over 5%. The CoinDesk Market Index (CMI), which measures overall crypto market performance, was down 3.9% for the day.
Equity markets also declined, amid a series of disappointing first-quarter earnings, including car maker Tesla, whose revenues fell slightly short of consensus estimates, and Blackstone, the world’s largest alternative asset manager. The S&P 500 and Nasdaq Composite fell 0.6% and 0.8%, respectively for the day. The Dow Jones Industrial Average (DJIA) was down 0.3%.
UPDATE (April 20, 2023, 23:05 UTC): Adds comment from Edward Moya.
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.
:format(webp)/www.coindesk.com/resizer/KnsJr2e_U9xZpD2ZQMUcfS-ZspM=/arc-photo-coindesk/arc2-prod/public/ZEPFGG2W5BBFRJUO5WS4CTRCPA.jpeg)
Jocelyn Yang is a markets reporter at CoinDesk. She is a recent graduate of Emerson College’s journalism program.
Learn more about Consensus 2023, 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.
Jocelyn Yang is a markets reporter at CoinDesk. She is a recent graduate of Emerson College’s journalism program.
Read more about