PanamaTimes

Tuesday, Feb 20, 2024

Bitcoin rallies slightly but still set for record losing streak after Terra 'stablecoin' collapse

Bitcoin rallies slightly but still set for record losing streak after Terra 'stablecoin' collapse

The biggest cryptocurrency edges back after hitting a 16-month low, but lags far behind recent levels and, unless there is a rebound in weekend trade, is headed for a seventh consecutive weekly loss.

Bitcoin has recovered slightly, but is still set for a record losing streak after the collapse of a so-called stablecoin.

Crypto-assets have taken a pounding after a digital token called Terra - supposed to be pegged to the US dollar - crashed in value.

The impact has rippled through markets with Bitcoin, the biggest cryptocurrency by total market value, hitting a 16-month low at one point.

Crypto-assets have also been swept up in broad selling of risky investments on worries about high inflation and rising interest rates.

Bitcoin managed to edge back in Friday trading to above $30,500 (£24,920).

This represented something of a recovery from a 16-month low of around $25,400 (£20,753) reached on Thursday.

But it remains far below week-ago levels of around $40,000 (£32,682) and, unless there is a rebound in weekend trade, is headed for a record seventh consecutive weekly loss.

"I don't think the worst is over," said Scottie Siu, investment director of Axion Global Asset Management, a Hong Kong based firm that runs a crypto index fund.

"I think there is more downside in the coming days.

"I think what we need to see is the open interest collapse a lot more, so the speculators are really out of it, and that's when I think the market will stabilise."

But broader financial markets have so far seen little knock-on effect from the cryptocurrency crash.


James Malcolm, head of FX strategy at UBS, said: "Crypto is still tiny and crypto integration within broader financial markets is still infinitesimally small.

"This idea that what goes on in crypto stays in crypto - that's in many ways where we still are at the moment."

Selling has roughly halved the global market value of cryptocurrencies since November, but this has turned to panic in recent trading with the squeeze on stablecoins.

Ratings agency Fitch said in a note on Thursday that there could be "significant negative repercussions" for cryptocurrencies and digital finance if investors lose confidence in stablecoins.

However, Fitch said that weak links between crypto markets and regulated financial markets will limit the potential of crypto market volatility to cause wider financial instability.

Newsletter

Related Articles

PanamaTimes
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
Former Bolivian President Evo Morales Denied Eligibility for 2025 Re-Election
Venezuela's Maduro Condemns 'Provocation' as UK Sends Warship to Guyana Venezuela's President Maduro has condemned the UK's deployment of the warship HMS Trent to Guyana as a hostile act amid ongoing border tensions
Colombian Hometown Unveils Impressive Nearly 21ft Bronze Statue of Shakira
×