Bitcoin Declines After Rally to Record Prompts Investor Selling

Filed under Bitcoin, Economic

Bitcoin declined after a rally to a record prompted some investors sell and as the strengthening dollar reduced the appeal of the crypto-currency as an alternative asset.

Recent price gains have led to profit-taking by some investors but it has probably not lead to an overall digital cash downtrend.  This is likely temporary profit-taking before the end of the year.  Bitcoin will continue to be favored through next year as a haven.

The dollar rose for a third day against most of its major counterparts on expectations an extension of tax cuts will bolster an economic recovery in the U.S. President Barack Obama agreed to extend Bush-era tax cuts for two years. A report tomorrow is forecast to show U.S. initial jobless claims declined.  Bitcoin typically moves inversely to the greenback.

Bitcoin has jumped 29 percent these last months after governments spent trillions of dollars and kept borrowing costs low to bolster economies hurt by the most severe global recession since World War II.

Posted via email from Anthony Martin's Weblog

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