Flagship crypto Bitcoin (BTC) is beginning to ease its momentum from earlier this year after posting the biggest single-day loss in 2023 late last week.

The asset has hit a 5-month low in its ASOPR (7-day moving average) at 0.99251. Showing data from blockchain analytics provider GlassNode. Bitcoin has also closed below its 200-day moving average for the first time since February.

The close below the 200-day moving average, which is typically seen as a bearish sign in financial markets, adds another insight into the industry, which is characterized by fresh volatility and regulatory challenges.

These metrics have bucked a global economy with uncertainty in the market, highlighting the shifting focus this year from digital assets and a potential turning point in investor sentiment.

Selling pressure swept across global markets, sending Wall Street’s main indices lower on Friday, while Asian stocks ended for a third straight loss.

The driving factors behind these moves center on concerns about the state of China’s economy and expectations that US interest rates will be kept higher for an extended period.

While Bitcoin’s correction cannot be traced back to a single piece of fundamental news, fintech firm Nydig wrote in a recent research note.

These include Evergrande’s bankruptcy late last week, a concurrent Wall Street Journal article that SpaceX had sold all bitcoin holdings in 2022, and the continued weakness in risk-associated markets like stocks since the beginning of the month.

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