Dado Ruvic/Reuters
Bitcoin's price fell as much as 4.4% on Thursday as the world's biggest cryptocurrency slid further away from the $50,000 level reached on Monday.
The token then recovered some ground and traded at $46,990 at 7.35 a.m. ET, according to Bloomberg data, down 3.5% for the day.
On Monday, bitcoin rose above $50,000 for the first time since May after rebounding sharply from below $30,000 in July. The move excited pundits, who suggested it could trigger another leg higher.
But bitcoin has since lost ground, falling around 7% from its Monday high as of Thursday morning.
"Cryptocurrencies lurched lower in the Asian session, with bitcoin poking at the lowest levels in more than a week," Steen Jakobsen, chief investment officer at Saxo Bank, said in a note.
Edward Moya, senior market analyst at Oanda, noted bitcoin had dropped ahead of a key speech from Federal Reserve Chair Jerome Powell at the virtual Jackson Hole symposium for central banks on Friday.
"Bitcoin is struggling here as investors await to see if Fed Chair Powell delivers a hawkish surprise and helps drive Treasury yields, which dampens the appeal for risky assets," he said.
The biggest cryptocurrency has been a major beneficiary of the US's huge fiscal and monetary stimulus during the pandemic-driven economic crisis. Its price could slip if Powell reveals the central bank will soon start cutting back on its support.
"Regardless of what happens this week at Jackson Hole, many cryptocurrency traders are waiting to see if risk aversion returns and triggers a bitcoin buying opportunity," Moya said.
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See Also:
- Crypto's explosive growth means investors must 'get on board, or be left behind,' says the ETF product manager at $71.2 billion VanEck — and these 5 stocks are ways to play the trend without owning volatile tokens directly
- Jerome Powell needs to be bold and detail the Fed's next steps at Jackson Hole for the sake of the economy, Mohamed El-Erian says
- Bitcoin and ethereum are gearing up to knock out all-time highs as cryptocurrencies get 'too big to be ignored,' a 20-year market veteran says. Here are 5 high-upside coins he's watching closely.
