Despite gains in other risk-sensitive assets, Bitcoin and other cryptocurrencies saw a continued decline on Thursday. The recent bullish trend that had been driving prices up has fizzled out, causing cryptos to return to their familiar trading ranges.
Bitcoin Hits Lowest Levels This Month
The price of Bitcoin has fallen by 1.5% in the past 24 hours, dropping below $26,750. This marks the lowest point for the largest digital asset so far this month, as it retreats from the levels near $28,000 that were held just last weekend.
A Disappointing Return to Familiar Levels
Bitcoin's return to the $26,000 zone is a bleak development for the cryptocurrency. It spent over a month stagnating in this range due to low volatility and trading volumes, which led to declining investor interest. Previously, a rally in late September pushed Bitcoin to around $28,500, igniting hopes of a new bullish streak with the psychologically significant $30,000 level in sight.
Bitcoin Trades Contrary to Stock Market Trends
While the Dow Jones Industrial Average and S&P 500 have experienced four consecutive days of gains, Bitcoin has been moving in the opposite direction. Some analysts suggest that crypto traders are adopting a more conservative approach due to potential conflict in the Middle East, which could impact demand for high-risk assets. However, another theory is that Bitcoin has simply become uninteresting once again.
Inflation Data's Potential Impact on Bitcoin
The release of the U.S. consumer-price index (CPI) inflation data on Thursday could serve as a catalyst for Bitcoin to surpass $27,000. Alternatively, it may firmly establish the token within the $26,000 range. Despite recent macroeconomic developments, Bitcoin has shown resilience and has remained unaffected. While hopes that the Federal Reserve will avoid raising interest rates have boosted stocks this week, cryptocurrencies have not experienced the same upswing.
Other Cryptocurrencies Follow Suit
Ether, the second-largest cryptocurrency, saw a 1% decline, trading at $1,550. Smaller tokens or altcoins also suffered losses, with Cardano and Polygon slipping by less than 1% and 2% respectively. Memecoins like Dogecoin and Shiba Inu were not exempt from the downtrend either, each shedding approximately 1%.