Bitcoin Continues To Trade Around $28k As Market Retreats

TL;DR

• Bitcoin is trading just around the $28k level after losing more than 2% of its value in the last 24 hours.

• The broader market continues to retreat, with the total market cap now around $1.16 trillion.

Bitcoin Struggles To Maintain Price Above $28k

Bitcoin, the world’s leading cryptocurrency by market cap, has continued its poor start to the day. The coin has lost more than 2% of its value in the last 24 hours and is now trading around the $28k level.

At press time, Bitcoin is trading at $27,989 but could recover from its slump in the near term. There is no major catalyst behind the market’s move in recent days unless that it is retracing after a rally past $30k a few weeks ago.

Investors are looking ahead to this week’s FOMC meeting, where the Federal Reserve is expected to increase interest rates by 25 basis points. 

Despite Bitcoin’s recent underperformance, the co-founder and CEO of research platform The Tie, Joshua Frank, told CoinDesk TV in an interview that he believes many institutions are still excited about Bitcoin. He stated that;

"Bitcoin is outperforming due to several reasons, including market consolidation, low trading volume, and banking uncertainty. In the short term, Bitcoin is more correlated to gold. However, the U.S. regulatory environment is unenthusiastic and negative toward crypto, contributing to low liquidity.”

Ether has also been underperforming in recent days and risks dropping below the $1,800 support level if the bearish trend continues. The recently concluded Shanghai upgrade saw ETH rally to an 11-month high of $2,141, but it has since lost more than 10% of its value.