Bitcoin Falls Below $40,000; Shiba jumps on Robinhood’s list

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Bitcoin fell back below $40,000 amid volatile price swings in financial markets, while day-trader favorite Shiba Inu jumped around 10%.

Shiba Inu and three other tokens – SOL from Solana, Matic from Polygon and COMP from Compound – were all listed for the first time on the Robinhood Markets Inc. platform. Shiba, which trades at a fraction of a US cent, was the biggest winner of the four.

Bitcoin fell below $40,000 on Monday for the first time in more than three weeks. It was around 1.1% lower at $39,411 as of 3:30 p.m. New York. Ether also came back down after briefly surging above $3,000.

Bitcoin and the broader crypto market have struggled in recent weeks as the Federal Reserve began raising rates to combat stubbornly high inflation and geopolitical unrest hurt risk appetite. A report on Tuesday showed that core inflation rose less than expected in March.

Bitcoin “is still consolidating in a triangular pattern dating back to mid-January,” said Jeffrey Halley, senior market analyst at Oanda. “The lower and upper bounds today are $36,500 and $47,500,” he said, implying that Bitcoin was well within its range.

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Crypto’s correlation with US tech stocks has risen sharply in recent weeks, suggesting that investors increasingly view digital assets as vulnerable to tightening monetary conditions. In contrast, the massive stimulus the Fed flooded the markets with during the Covid outbreak drove Bitcoin to an all-time high near $69,000 in November.

A break above or below these support or resistance levels could result in a $18,000 move in either direction, Halley added.

Strategists at Bespoke Investment Group point out that Bitcoin’s beating on Monday led the coin to tumble on its 50-day moving average. “From a strictly technical standpoint, Bitcoin is not trading well right now, as the benchmark crypto asset has followed a similar playbook to stocks since late 2021: a major downtrend, failure to hitting new highs on the rebound (and indeed, an outright rejection of its 200-DMA in the case of BTC), and now another trip below 50 days,” they wrote in a note.

Noelle Acheson, head of market insights at Genesis Global Trading, says there are two big narratives at play for Bitcoin: one is that the coin is a risky asset and will move in tandem with others. other more risky assets. She points to its correlation with a basket of unprofitable tech companies – a 90-day reading shows the highest correlation on record. Another narrative is that long-term investors hoard bitcoin because they don’t see it as a high-volatility game — rather, they see it as a store of value or a hedge against inflation.

“With so much accumulation and with more and more Bitcoin being held in illiquid or longer-term addresses, whichever definition you want to choose, there is less availability for macro investors or for new players. market,” she said over the phone. “Any entrant must source Bitcoin from an ever-shrinking stock of liquid Bitcoin – in other words, those that are moved by traders, which keeps volatility relatively high.”

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