Bitcoin is on track to have the worst week in almost two months, as a potential capital-gains tax hike for rich Americans exacerbated the instability that has been wreaking havoc on the world’s largest cryptocurrency.
Bitcoin fell 7.9% to $47,525 on Friday, falling below its 100-day moving average as it began to breach main technical thresholds. Wall Street analysts predict more losses for the notoriously volatile currency, which reached a record high of $64,870 on April 14 ahead of Coinbase Global Inc.’s IPO before swooning over the weekend for no apparent reason.
The nearly 20% drop this week is the worst for Bitcoin since it fell at the end of February after a broader sell-off of risk assets. Even digital currencies that had been eking out gains in recent days, such as Ether and the satirical Dogecoin, plummeted on Friday as the crypto room became a sea of red.
“Bitcoin has fallen below the 50-day moving average support that it has kept sacrosanct during this rally,” Pankaj Balani, CEO of Delta Exchange, said. “This seems to have further drawbacks.”