Bitcoin Takes Breather After Rally, Faces Fresh Tests

Dow Jones
Yesterday

0435 GMT - Bitcoin trades lower in Asia, taking a breather after last week's rally. After its best week in over two years, Bitcoin's rebound faces risks, says Linh Tran at XS.com. A temporary easing of yield pressure, dollar weakness and expectations of less restrictive financial conditions improved risk appetite while encouraging capital flows into bitcoin. That suggests the rally has genuine buying behind it, but the move from $70,000 to nearly $80,000 still contains a degree of technically driven momentum. Volatility and profit-taking will be difficult to avoid. What happens next depends on if ETF inflows are sustained, how Treasury yields behave and messaging from Jackson Hole. If the dollar continues to weaken and long-term yields don't rise, bitcoin could retest $80,000. A hawkish Fed signal could spur consolidation. Bitcoin slips 0.3% to $77,203.

 

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