Is Bitcoin oversold?

Naeem Aslam Zaye Capital Markets

The dent in investors’ sentiment significantly affected cryptocurrencies, which witnessed a drastic decline in prices over the weekend. Bitcoin, the king of cryptocurrencies, fell drastically below the crucial $50,000 mark before rising again, but failed to regain lost ground and move above the $50,000 price. It is currently trading at around $49,000. The reason behind the selling spree is the same as for technology stocks, which is that investors are decreasing their exposures to risky assets and moving to safe-haven commodities while awaiting price action in financial markets to stabilize. This week, investors should closely monitor crypto markets to see if Bitcoin can surpass $50,000 and regain momentum towards its all-time highs.

Author

Naeem Aslam

Zaye Capital Markets

Based in London, Naeem Aslam is the co-founder of CompareBroker.io and is well-known on financial TV with regular contributions on Bloomberg, CNBC, BBC, Fox Business, France24, Sky News, Al Jazeera and many other tier-one media across the globe.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

XRP battles selling pressure as profit-taking, ETF inflows shape outlook

Ripple (XRP) is trading downward but holding support at $2.22 at the time of writing on Wednesday, as fear spreads across the cryptocurrency market, reversing gains made from the start of the year.

Crypto Today: Bitcoin, Ethereum, XRP pause uptrend amid mixed ETF flows, weak sentiment

Bitcoin extends correction below the $93,000 mark at the time of writing on Wednesday, signaling a cooldown from the early-year rally that touched $94,789 on Monday. Altcoins, including Ethereum and Ripple, are also facing headwinds amid uncertainty in market sentiment.