Bitcoin Sags After its Longest Streak of Monthly Gains Since 2021
(Bloomberg) -- Bitcoin slipped back Monday after climbing for four consecutive months through April in the longest such winning run since 2021.
The token slid as much as 4.5% and was trading at $28,221 as of 2:16 p.m. in New York. Smaller coins such as Ether and Solana also retreated, as did an index of the top 100 digital assets.
Bitcoin's 72% rebound in 2023 from last year's crypto rout has stalled around the $30,000 level as traders await further catalysts. The rally has been fueled by bets on an eventual Federal Reserve pivot to looser monetary policy as well as arguments that the US banking crisis eroded confidence in fiat currency.
First Republic Bank is at the center of the latest leg of the banking woes in the US. JPMorgan Chase & Co. won the bidding to acquire the bank in an emergency government-led intervention after private rescue efforts failed to fill a hole on the troubled lender's balance sheet and customers yanked their deposits.
“The market is very jittery as it waits to see what happens to First Republic Bank,” said Adrian Przelozny, head of crypto exchange Independent Reserve. Monday's Bitcoin wobble may be “just volatility related to this, and some long positions got liquidated as the market dropped a bit, which then cascaded.”
Bitcoin's four-month stretch of gains through April ranks as the longest since a six-month advance to March 2021. In the past decade, four-month winning runs in Bitcoin foreshadowed an average surge of 260% over the subsequent year, data compiled by Bloomberg show.
Bitcoin and the wider crypto world remain exposed to a variety of risks, such as the US crackdown on the sector and the possibility of traders paring back expectations that monetary policy will become less restrictive later this year.
For now, the Fed is expected to boost interest rates by another quarter percentage point on Wednesday to damp inflation even as economic risks build.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
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