Bitcoin Records Longest Winning Streak Since Early Crypto Days

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(Bloomberg) – Bitcoin extended its declines after posting a rare 14-day winning streak as a climate of caution supplanted risk appetite that drove a variety of assets higher at the start of the year .

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The largest token fell 0.7% on Thursday and was trading at around $20,700 as of 9:20 a.m. Tokyo. Smaller coins like Ether, Solana, and Polkadot also saw modest losses.

Bitcoin has now become very overbought in the short term and is preparing for a short term pullback, said Matt Maley, chief market strategist at Miller Tabak + Co.

US stocks fell and Treasuries rallied on Wednesday on concerns over economic growth, and that gloomy mood spilled over to digital assets as well. The crypto sector also continues to deal with the fallout from the collapse of the FTX exchange.

Genesis Global Capital, the lending unit of Digital Currency Group, is setting the stage for a bankruptcy filing as early as this week, according to people with knowledge of the situation. DCG companies are key cogs in the struggling digital asset industry.

Bitcoin’s 14-day Relative Strength Index has risen from above 90 but remains above 70, the threshold for so-called overbought conditions. For some strategists, this hints at the possibility of a pause in Bitcoins 2023 advance.

Bitcoin and a gauge of the top 100 tokens have both jumped more than 20% this year, mitigating at least some of last year’s digital asset rout. This is largely due to the idea that debilitating interest rate hikes are coming to an end as inflation wanes.

Virtual coins have lost an estimated $2 trillion since peaking in November 2021, precipitating a series of blowouts that have led a slew of institutional and retail investors to wash their hands of crypto.

The story continues

For crypto market prices: CRYP; for the best crypto news: TOP CRYPTO.

–With the help of Vildana Hajric.

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