Major digital currencies dropped on Thursday, extending losses for the week. Bitcoin fell 1.91% to trade at $28,522.50, while Ethereum broke below the key $1,800 level, according to data from Coinbase.
The largest cryptocurrency by market value, Bitcoin declined to its lowest in over two months. It has slumped 3.51% over the past seven days. Ethereum lost 1.76% and was changing hands at $1,786.79. Ripple also weakened 0.9% to $0.58.
Losses across the crypto board came as risk appetite faded. Traders remained cautious given elevated inflation and looming central bank rate hikes.
However, Tom Lee of Fundstrat Global Advisors said Bitcoin could reach an all-time high in 2023 if US regulators approve the first bitcoin-linked exchange-traded fund.
Lee told CNBC approval of such a product would unleash significantly more demand than daily bitcoin supply. This could potentially drive the cryptocurrency to as high as $180,000, offering some optimism to the sector.
For now though, downbeat sentiment prevails, keeping digital coins on the back foot heading into the weekend.
