The world’s dominant cryptocurrency Bitcoin declined to two-week lows below $45,000 on Friday. According to Coindesk, Bitcoin dropped to $44,279, the lowest level since February 11, having failed to keep gains over $50,000 for the second straight day on February 25.
The latest weakness may mostly be attributed to increasing bond yields and losses in the global stock markets. The U.S. 10-year Treasury yield climbed to a one-year high of 1.61% on February 26, taking the year-to-date gain to more than 50 basis points.
The S&P 500 dipped by more than 2% on Thursday, setting the stage for sharp losses in the Asian and European shares.
The dominant cryptocurrency has recovered to trade close to $46,629. However, Bitcoin is still down more than 6%, while it fell by approximately 20% for the week.
It has to be mentioned that if If these loses are held through Sunday’s UTC close, the resulting weekly decline would be the highest since the second week of March 2020, when prices dropped by 33%.
The Coinbase Pro exchange has registered outflows of 25,000 BTC
Furthermore, the digital currency has suffered only two double-digit weekly declined and just eight weekly drops in the last 11 months. According to data, the bulls have dominated the price action since the crash of March 2020 and more so since early October. The cryptocurrency has surged from $10,000 to above $58,000 in the last four and a half months.
Moreover, according to Ki-Young Ju, CEO, the Coinbase Pro exchange has registered outflows of 25,000 BTC in the last 24 hours in a sign of steadfast demand from U.S.-based institutional investors of blockchain analytics firm CryptoQuant.
Bitcoin and stock markets had been showing signs of weakness since the start of the week. Bitcoin dropped by 15% on Monday and Tuesday, the highest two-day decline in 11 months, after hitting record highs over $58,000 late Sunday. The cryptocurrency seemed overheated at record highs and due for a correction.