The world’s biggest crypto asset, Bitcoin (BTC) printed a red index on the 7 days metric, depicting an increase in selling pressure. As the digital assets market registered a slight decline over the past 3 days, the fear and greed index dropped from ’extreme green’ to ‘greed’ standing at 71 points. Amid high turbulence in the market, Cathie Wood gave out a good word for BTC.
Cathie Wood on Bitcoin
In an interview with CNBC’s Squawk Box, Cathie Wood, CEO of Ark Invest stated that there are other currency devaluations that people are not talking about. This comment came over Bitcoin’s ongoing bullish performance.
Wood added that she thinks this is a flight to safety and she emphasized, believe it or not, taking place. Ark Invest’s CEO highlighted that Bitcoin is a hedge against currency devaluation as it has a role to play in preserving purchasing power and wealth.
According to the reports, the daily figures on demand for spot-Bitcoin ETFs show some rough performance during Asian hours following the closure of US timings. This has impacted market sentiment. On Tuesday, Bitcoin recorded its sharpest drop in a month as investors withdrew funds.
BTC making a recovery?
Bitcoin made a recovery on Wednesday after falling for a couple of days. BTC price is down by more than 4% in the last 7 days. It is trading at an average price of $66,610, at the press time. Its 24 hour trading volume dropped by 20% to stand at $38.9 billion. The biggest crypto is holding a market cap of $1.3 trillion.
BTC maintained losses around $66K amid Asian trading on Tuesday, influenced by surging Treasury yields and Fed rate cut delay speculations. The largest altcoin, Ether (ETH) traded above $3,300.
The 10 year Treasury note hit a two-week high of 4.40% which had added to the concerns over risk asset outflows. Bitcoin’s drop to $65k was linked to rising yields affecting investor risk appetite.
Polymarket bets against rate cuts by May, with the CME Fed Watch tool indicating a 97% chance of rates remaining unchanged post-May meeting. Over $245 million in long positions liquidated, with $60 million in BTC positions affected.
The report added that the influx of $12 billion into US Bitcoin ETFs since January 11 helped BTC’s price dynamics. However, observed patterns in ETF flows show fluctuations in Asian-hours market returns, with February. The early March shows stronger performances compared to later in March.
