Bitcoin reclaims $30,000 following the longest weekly loss streak since 2011

The biggest digital cryptocurrency gained on Monday after falling for seven weeks in a row, the longest losing trend since August 2011.

Bitcoin, the world’s largest and most well-known cryptocurrency, climbed 1.7 percent to $30,425 a level it has been primarily stuck around since the TerraUSD algorithmic stablecoin’s collapse caused a crypto selloff.

A sudden decrease in digital currency values and the instability enveloping TerraUSD. And its Luna token caused cryptocurrencies to lose nearly $800 billion in market value earlier this month.

According to Bloomberg data. The largest digital coin had been losing for seven weeks in a row. The longest losing trend since August 2011. This mirrored the length of the S&P 500’s collapse, demonstrating how stocks and crypto are still inextricably tied.

On Monday, Ether, the cryptocurrency tied to the Ethereum blockchain network, climbed 2.23 percent to $2,073.73.

“If the S&P falls some more, that should create one final flush. And a great buying opportunity for Bitcoin“. Fundstrat Global technical strategist Mark Newton said. “There’s a lot of bearishness. And we should be approaching a time when you really want to buy into that in the next couple of months.”

The crypto mob has taken over Davos’ main street

Meanwhile, the World Economic Forum (WEF), which caters to the financial elite, including large institutions like Citigroup and Credit Suisse, is hosting panels on cryptocurrency’s carbon footprint and future, as well as one on decentralised banking.

Despite the recent drop in digital coin values, participants were treated to a free bitcoin pizza booth and a “Liquidity Lounge” at this year’s summit in Davos, where blockchain and cryptocurrency enterprises have taken over the city’s main thoroughfare.

Crypto industry executives have descended on the annual meeting of business leaders. And politicians in the Swiss Alpine resort, hoping to spur speedier use of their largely unregulated technology.

The recent struggles of Bitcoin

Bitcoin has struggled in recent weeks as inflation has remained high despite central banks raising interest rates, raising the prospect of further monetary tightening. Regulators around the world have increased calls for greater monitoring since the TerraUSD stablecoin fell. From its intended dollar peg earlier this month, weighing on the future for crypto markets.

While Bitcoin has been marketed as an inflation hedge in the past, it has recently shown to be highly connected with risk assets such as the Nasdaq 100, which has fallen due to the shifting monetary system.

Crypto traders are increasingly keenly watching economic indicators. For clues of where monetary policy and, by extension, digital-asset pricing is headed. Due to their tendency to trade in lockstep with stocks.

Bitcoin is likely to hover around $29,000 to $31,000 for the next couple of weeks,” said Noelle Acheson and Konrad Laesser of Genesis Global Trading in a note Friday. They added that some economic-data releases, like US gross domestic product or inflation measures, “could change the narrative.”

Rick Bensignor, president of Bensignor Investment Strategies and a former Morgan Stanley strategist, uses DeMark technical indicators to argue that Bitcoin won’t break higher anytime soon. DeMark technical indicators compare the most recent maximum and minimum prices to the previous period’s equivalent price to measure demand.

“I’d still expect another four weeks of heaviness,” he said in a note Monday. The May 12 low around $25,425 and the bounce from that keeps support intact at $28,900, he added.

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