Bitcoin rebounded on Monday after the digital toke plummeted below its 2017 high over the weekend, but traders remained in extreme fear due to a plethora of disappointing crypto headlines and macro factors keeping pressure on sentiment.
The world’s largest cryptocurrency by market value surged above the $20,000 mark for much of the day Monday. Nonetheless, it last dipped again by roughly 1% to $20,005.46, according to Coin Metrics. Over the weekend, Bitcoin slipped as low as $17,601.58. Meanwhile, Ether climbed less than 1% to $1,102.86.
Although investors are positive about the rebound, BTC is still 70% lower than its November all-time high of around $69,000. It’s down 57% year-to-date. With the continuous economic mayhem, bitcoin could potentially see more downside, according to Yuya Hasegawa, a crypto market analyst at Japanese bitcoin exchange Bitbank.
“Bitcoin’s weekend dip was, to put it simply, not deep enough,” he said. “The macro-environment has not really changed from last week’s FOMC meeting: there still has not been a clear sign of inflation coming down and the Fed may still drive the economy into recession by raising rates too aggressively or simply by failing to tame inflation.”
