Following a disappointing earnings forecast from technology behemoth Microsoft Corp, Bitcoin is on the verge of its first back-to-back loss since the beginning of the year.
Many investments soared at the start of 2023 on predictions that central banks will delay or possibly reverse interest-rate rises in the months ahead.
According to Tony Sycamore, a market analyst at IG Australia Pty, the disappointment with Microsoft’s predictions flowed over into crypto, which is still quite highly associated with technology companies. “It’s almost like trying to grip a ball underwater so far this year with risk assets,” he added.
According to Hayden Hughes, CEO of social trading platform Alpha Impact, a rush of short covering that likely contributed to Bitcoin’s 36% gain this month may be waning. In a letter this week, Stockton stated she is “neutral intermediate-term with the return of overbought circumstances” for Bitcoin.
Bitcoin and a barometer of the top 100 tokens both lost more than 60% of their value last year, dragged down by soaring borrowing rates and a slew of crypto meltdowns.
According to Coin Gecko statistics, the entire market value of digital tokens increased by nearly $250 billion in January.