Crypto Markets Extend Decline as Bitcoin Slips to Multi-Week Lows
Crypto markets have continued their downward trend, with Bitcoin experiencing a significant decline, shedding hundreds of billions of dollars in market value. However, according to Coinbase UK CEO Keith Grose, this downturn is a reflection of broader macroeconomic jitters rather than a loss of confidence in digital assets. Grose points to “jitters around AI-bubble fears and a broader risk-off mood among investors” as key drivers of the sell-off.
Industry Progress and Adoption Trends
Despite the current price action, Grose emphasizes that the industry is making progress on multiple fronts, including regulatory clarity, infrastructure development, and institutional participation. “The past year has brought real progress… This period is a recalibration, not a reversal,” he stated, highlighting that underlying adoption trends remain intact. Bitwise Chief Investment Officer Matt Hougan also urges investors to look beyond the short-term volatility, arguing that Bitcoin’s long-term value is tied to the service it provides, not its recent price movements.
UK Market Strategy and Regulatory Growth
Despite the volatility, Coinbase is expanding its presence in the UK, prioritizing regulated products that can function across market cycles. The company’s newly launched GBP savings product offers UK customers a secure way to grow their cash balances during uncertain times. “In the UK, our focus is on building regulated, trusted products that work through every part of the cycle,” Grose said, emphasizing the importance of advancing economic freedom for everyone.
Technical Breakdown and Market Analysis
Carolane De Palmas, analyst at ActivTrades, attributes Bitcoin’s decline to a combination of macro stress and structural pressures. The asset’s 28% collapse from its October record stems from macro headwinds and a sharp deterioration in market structure. De Palmas notes that Bitcoin’s investor base overlaps heavily with AI and tech stocks, leading to synchronized outflows when concerns over inflated tech valuations intensified.
Federal Reserve Uncertainty and Technical Indicators
Bitcoin recently broke below its 50-week moving average and slipped into the weekly Ichimoku Cloud for the first time since early 2023, moves that De Palmas says point to a weakening longer-term uptrend. With the Federal Reserve’s December decision still uncertain and a government shutdown delaying key economic data, risk sentiment is expected to remain fragile. For more information, visit the original source: https://cryptonews.com/news/coinbase-uk-ceo-says-crypto-downturn-reflects-macro-jitters-not-lost-confidence/
