Offbeat asset bitcoin is having a difficult time attracting investors during this Christmas holiday.
The benchmark cryptocurrency, which is still up by more than 100 percent on a year-to-date (YTD) scale, plunged by up to 8.27 percent this week. On Friday, bitcoin established a fresh weekly low of $7,053.32. At its highest, it was trading at $7,688.99.
The move downhill followed a relief price rally last week, wherein bitcoin surged by 19.58 percent after locating a strong footing near $6,400. Nevertheless, the broader outlook showed the cryptocurrency in a medium-term downtrend. It is now continuing in the same downward direction as the $7,400-7,600 area continues to reject bullish advancements.
Investor Look Elsewhere
The bitcoin’s ongoing downtrend comes at a time when other major assets/markets are registering fresh highs.
On Thursday, the Wall Street notched its best levels over hopes of a positive trade deal. US President Donald Trump tweeted on Christmas even that their prolonged trade war with China is coming to an end.
“The deal is done,” he said. “It’s just being translated right now.”
The anticipation of a trade peace prompted the three major US stock indexes to mark new records on Thursday. The S&P 500 (SPX) established its historic high after touching 3,240.1 while the Dow Jones (DJI), too, climbed to its best level of 28,624.1 points.
The Nasdaq Composite Index (IXIC), meanwhile, climbed 1.03 percent to close above 9,000 points for the first time.
Christmas turned Diwali for Gold as well. The bitcoin rival closed Thursday above the $1,500 mark, indicating that investors are maintaining their portfolio risks against a visibly overbought equity market.
Unfortunately, they did not shower much love on bitcoin, which…