The price of bitcoin declined slightly on Friday and was headed for a significant weekly drop amid concerns about slowing economic growth, which has negatively impacted broader financial markets and cryptocurrency prices. Writes UNN with reference to Investing.
Details
Fears of a massive sell-off of cryptocurrencies by the US government, as well as uncertainty about the impact of the presidential race on cryptocurrency regulation, kept traders from actively investing in cryptocurrencies.
By 02:02, bitcoin had stabilized at $64,255 after falling to $63,697.1 earlier.Bitcoin is suffering weekly losses amid deteriorating sentiment in the cryptocurrency sector.
This week, the world's largest cryptocurrency is set to lose more than 5% due to growing market uncertainty.Bitcoin was hit by reports that the US government has mobilized about $2 billion in confiscated tokens for possible sale, putting pressure on its price.
The general sentiment of avoiding risky assets also kept traders away from cryptocurrencies. Weak economic data from the US and China increased concerns about slowing growth, forcing traders to seek safe-haven assets such as gold, the dollar, and the Japanese yen.
Uncertainty over the US presidential election also weighed on the market after a Bloomberg poll showed that Democratic frontrunner Kamala Harris was tied with Republican Donald Trump, reducing Trump's chances of winning.
Last week, crypto markets surged after Trump's comments about supporting the industry if he is re-elected. Harris, on the other hand, has not spoken openly about cryptocurrencies, but it is believed that she will continue the Biden administration's policy of cracking down on cryptocurrencies due to their involvement in fraud.
Ether, the world's second-largest cryptocurrency, fell 1.6% to $3,134.41, with a weekly loss of 3.5%.
The launch of Ether spot exchange-traded funds in the US markets last week did not support cryptocurrencies too much. XRP, ADA, and SOL fell by 2-7%, and among the meme tokens, DOGE and SHIB lost more than 2% each.
Recall
Today, a law on artificial intelligence came into force in the European Union , which will regulate its use.