Bitcoin and Ether Prices Stagnate as Traders Take Wait-and-See Approach

After staging a recovery earlier this week, cryptocurrencies were stuck in a holding pattern Friday afternoon.

Bitcoin (BTC) and ether (ETH) appeared to be in a period of consolidation where prices bounce around within a tight range, showing indecisiveness among traders.

Bitcoin and ether had both climbed by less than a percent. Notable performers on CoinDesk’s big board include XRP (XRP), up 10 percent, Stellar (XLM) in the green 3 percent and dash, up 4 percent. All 24-hour price changes are from 20:00 UTC (4 p.m. ET) on March 27.

Traditional markets, meanwhile, continued to reel from the record unemployment claims in the U.S., part of the fallout from the coronavirus outbreak, despite a $2 trillion stimulus package making its way to President Donald Trump for his signature. U.S. stocks closed with the S&P 500 index down 3 percent. Earlier in the day, Japan’s Nikkei 255 closed its session up 3.8 percent. For Europe, the FTSE 100 Index closed in the red 3.3 percent.

See also: How a Flurry of ‘Digital Dollar’ Proposals Made It to Congress

Federal Reserve “and fiscal policies have averted for now accelerated economic and financial de-leveraging. Unfortunately, they can’t avoid a deep and sudden recession resulting in alarming unemployment and business closures,” Mohamed A. El-Erian, chief economic adviser at Allianz, wrote in a tweet.

On low volumes, bitcoin’s price changes have narrowed, staying in a $6,400-$6,900 per 1 BTC range since March 24. This has put the bellwether cryptocurrency’s 10-day and 50-day moving averages close to each other.

Bitcoin trading on Coinbase since March 24. Source: TradingView

“I think bitcoin just moved up from its $4,000-$5,000 crash range earlier than equities did. While equity markets have been rallying the last couple of sessions, other more safe haven-type markets like bonds and gold have been consolidating,” said Siddharth Jha, a former Wall Street analyst now focused on blockchain technology at startup…

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