Bitcoin was slightly lower early Friday, leaving the cryptocurrency on track for its first weekly price decline since mid-July.
The largest cryptocurrency broke above $12,000 earlier in the week and failed to hold the gains, though John Willock, CEO of crypto asset manager Tritum, told CoinDesk Thursday that “maybe we’ve got $13,500 in the next phase up in the coming days.”
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European stocks were up and the euro was down early Friday as investors continued to bet on technology shares and a vaccine breakthrough while shrugging off fresh signs that the economic recovery is faltering. The dollar was headed for its first weekly gain since mid-June.
“It does almost seem as if the entire crypto market is taking its cues from the U.S. dollar,” Mati Greenspan, founder of the foreign-exchange and cryptocurrency analysis firm Quantum Economics, told subscribers in an email.
Even after growing 100-fold in the past five years, the entirety of the cryptocurrency asset class, which has a total market valuation of $372 billion, is just fraction of the $35 trillion U.S. stock market.
What’s surprising is that still-fledgling digital-asset markets might be more rational and functional these days than Wall Street: The various ups and downs of token prices are sending out bona fide market signals that point to projects and opportunities where capital is warranted, and investors are responding.