- Bitcoin dropped 3.3% to $66,354, hitting its lowest since last Friday's selloff
- Ether fell 3.8% to an intraday low of $1,931 amid broader cryptocurrency declines
- MSCI Asia Pacific Index rose 1.5% to a record high, outperforming US and Europe
Bitcoin fell to its lowest level since last Friday's selloff, diverging sharply from Asian equities that climbed to fresh records and highlighting investors' lack of confidence in a sustained recovery.
The largest cryptocurrency dropped as much as 3.3% to $66,354 in early New York trading on Wednesday. Ether, the second-biggest coin, fell 3.8% to an intraday low of $1,931.
Those declines came even as the MSCI Asia Pacific Index advanced 1.5% to an all-time high, extending its year-to-date outperformance over US and European peers. A gauge of emerging-market stocks also touched a record. The dollar declined.
“We suspect last week's $60,000 low, created on massive volumes, is a capitulation type low, a clear catalyst for a sustained rebound remains elusive,” said Tony Sycamore, an analyst, IG Australia.
Renewed expectations of US rate cuts aren't buoying digital tokens, where sluggish trading underscores the bleak mood gripping the sector since October. While large Bitcoin investors have started purchasing again, the token's failure to attract wider buying puts it at risk of further declines.
“The acceleration of price decline to $60,000 without corresponding volume spikes suggests thin order books and lack of buyer conviction at intermediate levels,” Kaiko analyst Laurens Fraussen wrote in a note. “This creates vulnerability to further downside on modest selling pressure.”
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