Bitcoin has become the proverbial falling knife, were no traders wish to touch it until it shows a landing.
In Monday morning trading the crypto is looking to break through the $7500 market.
This despite global investors taking profits as equity exchanges across the globe move to the downside for the third day in row.
“It showed some support at $8,000 overnight but that was in thin trading,” said one currency trader. “But that was short-lived and now we are looking at $7,500,” he added.
“If you look at the broader markets, there is a bit of panic selling globally. I would have thought bitcoin could become a safe harbor for investors looking to take some profit from stocks.”
“However, we see gold moving higher as the more traditional play on inflation hedge. That’s were I thought bitcoin would shine. Apparently not,” an Asian markets trader based in New York told Gray’s economy.
Bitcoin has lost 22% in just the first 5 days of trading in February and is 56% off of its Dec. highs.
“We see a rotation in the broader markets out of the high-flying stocks. The rotation is caused by inflation fears due to higher wages in the US, so this could be to bitcoin’s benefit since it is not tied exclusively to the US dollar,” a currency trader told Gray’s Economy.
“I’m just not sure if that idea has legs right now. Not that many traders have experience in A) an inflationary environment and B) bitcoin,” the trader added.