Richly Valued Bitcoin Extends Decline After Positive Jobs Data

N0BSInRy 980x567

Bitcoin prices dropped Friday, tracking declines in the US indexes after new data indicated a stronger economic recovery and an auction of seven-year bonds met with lukewarm demand from investors. The flagship cryptocurrency’s upside momentum faltered earlier this week after establishing a record high above $58,000. At first, the move downside appeared like a natural downside correction that follows massive parabolic gains. Nonetheless, the sell-off accelerated in response to the latest macroeconomic updates, showing a positive correlation with tech stocks. Bitcoin is down 20.78 percent from its record high. Source: BTCUSD on Investors rushed out of some of the hottest pandemic winners in 2020. Shares of technology companies like Apple, Alphabet, and Netflix fell 2 percent apiece. Meanwhile, Tesla, the US carmaker which holds $1.5 billion worth of bitcoin in its reserves, suffered a share drop of 8 percent. Dwyfor Evans, the head of macro strategy at Hong Kong-based…

Read the original article here