Bitcoin falls below the lowest average price in the last 200 days
Bitcoin continued its declines for the fifth consecutive week, falling below the 200-day average price, a level that analysts view as an important indicator in determining the overall direction of the cryptocurrency in the medium term.
Bitcoin fell 8.4% to $4,573 on Monday in New York trading. The Bloomberg Galaxy Crypto Index fell 7.4% to its lowest level since early October.
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"The notion that volatility will decrease as it matures has not materialized," said Mark Chandler, chief market strategist at Bancoburn Global Forex. "Volatility appears to be one of its features, and claims of it being an inflation hedge are false," according to Bloomberg. Al Arabiya.net reviewed it.
Bitcoin is still down about 30% from its high of $69,000 on November 10.
Given the scarcity of Bitcoin, with only 21 million units expected to exist in the end, proponents argue that Bitcoin and other digital assets can act as a hedge against volatility.