Bitcoin sinks below $28K as crypto-tied stocks fall into the red

Bitcoin (BTC-USD) prices fall below $28,000 after Coinbase (COIN) received regulatory approval to offer crypto futures. Yahoo Finance Markets Reporter Jared Blikre explores the price action surrounding the crypto space and how crypto-related stocks are faring ahead of Thursday’s closing bell.

Video Transcript

JARED BLIKRE: I haven’t talked about crypto in a while. Let’s take a look at the Wi-Fi interactive, where we are seeing some definite downside action, and not only Bitcoin but Ethereum. Each down about 4%. And here is a three-month chart of Bitcoin.

And you can see, after reaching this local peak here in early July, it has just been a steady slog down for Bitcoin, now reaching the lowest levels in about two months and also having the worst day in a month. Just haven’t seen much volatility lately. In fact, most days you see crypto doing practically nothing. So kind of in and of itself, something worth mentioning.

A couple of things on the horizon here, we just got Coinbase, one of the biggest brokers in the world, also in exchange, got permission from the Commodity Futures Training Commission only yesterday to become a futures commission merchant. So this is going to mean that they can sell to their customers futures contracts in both Bitcoin and Ethereum, anything else that comes down the pike that’s authorized by the CFTC. It doesn’t really change the regulatory game that much.

They still have problems with the SEC, but it does kind of make the SEC look out of step. So let’s get back to the charts here. Here’s Bitcoin. I was showing you the last three months. But interesting thing that’s happening over the last year, guess what?

We are now poking just below this lower trend line. So really, the bulls want to get above $28,000, $28,500 pretty soon here. Otherwise, it’s going to start looking like a breakdown. Now, crypto is known for a lot of false breakdowns. I’m always on alert for one of those, and that usually happens over the course of a few days.

All right. Jared with the levels for us to watch. Jared Blikre at the New York Stock Exchange. Thank you so much.