The value of bitcoin was little changed Wednesday, as the market continued to consolidate following a large upswing early last week.
The BTC/USD exchange rate edged down 0.1% to $634.60 Wednesday morning at 7:41 am, according to CoinDesk. The pair traded within a very narrow range as the markets continued to search for a new catalyst.
Bitcoin surged more than 3.5% on October 11, as the market finally broke higher after two months of negative news headlines related to a major cyber breach of a Hong Kong-based digital currency exchange. Prices are up around 4.5% over the past four weeks, but have been unable to penetrate $640.00. The BTC/USD briefly traded above that level last week before returning to the mid-$630 range.
Meanwhile, the US dollar softened for a second time in three days against a basket of fiat currencies. The greenback had previously traded at seven-month highs, as traders continued to anticipate a rise in US interest rates after the presidential election.
In economic data, China’s economy expanded at an annualized 6.7% in the third quarter, the National Statistics Bureau reported Wednesday. That was the third consecutive quarter of 6.7% growth, an indication that the world’s second-largest economy was stabilizing after a sharp downtrend over the past two years.
China has seen a large uptake in bitcoin trading, as investors look to diversify away from yuan-denominated assets. Despite China’s recent gains, the economy is expected to weaken further for the foreseeable future.
Bitcoin was in the news earlier this week after investors Tyler and Cameron Winklevoss named State Street the administrator of their proposed exchange-traded fund. The brothers had previously filed their first application for a bitcoin ETF with the Securities and Exchange Commission (SEC). If approved by regulators, the Winklevoss fund would be the first ever US-issued bitcoin ETF.