Bitcoin struggles to find momentum after historic crypto wipeout
The market struggles to stage a lasting recovery after a record spree of liquidations sparked by US-China tensions
After a week-long rout that erased hundreds of billions in digital-asset value, bitcoin has again failed to live up to its billing as a safe-harbour asset.
Once cast as a hedge against market turmoil – a “digital gold” for the blockchain age – the original cryptocurrency stabilised on Friday morning in Singapore after sliding alongside global equities and credit to hover near US$109,000, according to data compiled by Bloomberg.
So far, the market has struggled to stage a lasting recovery, even as heavyweights including Kraken, Circle, BitGo and Ripple push deeper into regulated finance – seeking trust charters, payment rails and card products.
“What’s striking is the timing of the crash coinciding with major players pursuing banking licences,” said Rachael Lucas, analyst at BTC Markets. The pivot to traditional financial infrastructure “signals a strategic hedge against volatility, aiming to build legitimacy”, she added.
Risks stemming from the US and China sparring over trade continue to plague risk assets beyond crypto.