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Bitcoin Approaches 2022 Lows Ahead Of Weekend

Published 05/06/2022, 02:07 PM
IXIC
-2.70%
BTC/USD
-0.56%
ETH/USD
-2.00%

Bitcoin shed more than 10% Thursday, while staying under pressure ahead of the weekend. The BTC/USD struggles to regain $36,000 after notching February lows around $35,500 earlier on Friday, the biggest one-day drop since the start of the year.

Similarly, global equity markets stay under pressure after Wall Street witnessed a major sell-off yesterday. The downbeat tone surrounding stocks and other risky assets persisted after fresh data out of the United States showed the economy created 428,000 jobs in April versus 390,000 expected. In general, markets didn’t see any notable reaction to the release, while the dollar failed to capitalize on a strong headline figure as the unemployment rate remained unchanged at 3.6% versus the expected drop to 3.5%.

U.S. stock markets opened lower today, with the tech-heavy Nasdaq Composite leading the losses again. Being in a tight correlation with the index as of late, Bitcoin looks set to stay on the defensive as long as U.S. equities remains confined to this year’s bearish trend. On the downside, the inability to hold above the $35,500 threshold would pave the way towards 2022 lows seen just below $33,000 in January. The developments over the weekend will set the tone for the crypto space. Negative news would add to the selling pressure in the market.

Ethereum, the second-largest cryptocurrency, suffered similar losses. The price of ETH fell below the $3,000 mark to register mid-March lows around $2,628 in recent trading. The digital currency could be set to extend the decline in the near term, with focus shifting towards the $2,600 support zone, followed by $2,400.

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