Higher yields push bitcoin below $19K
As long as inflation remains a worry and the prospect for higher rates persists, demand for risky assets, including cryptocurrencies, will be facing headwinds.
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As long as inflation remains a worry and the prospect for higher rates persists, demand for risky assets, including cryptocurrencies, will be facing headwinds.
Bollinger Bands suggest a volatility cycle that oscillates between band squeezes and expansions. For example, the previous four times, the Bollinger Width dropped below 0.1 (green dashed verticals), significant volatility increases followed, with the cryptocurrency declining meaningfully.
Elon Musk is known for his commentary around Doge, having even suggested its use on Twitter, so the Crypto jumped on news that h now intends to complete acquisition of the social networking platform
Interestingly, the recent drop in the greenback (blue vertical) has benefitted the NAS100 more than the cryptocurrency. Given BTCUSD's recent resiliency, we would have expected it to have had a more robust response to the dollar's movement. Instead, the NAS100 has risen by 5.6% compared with Bitcoin's 4.6%, showing its relative strength.
BTC/USD extends yesterday’s gains as sentiment shows improvement and the greenback retreats, after its recent Fed-fuel rally
Numeraire (NMR) Coin: What is it? Should you trade it? One of the features that attracts traders to cryptocurrency is its decentralised nature. It means that, instead of going through an exchange, trades are made directly between buyer and seller. Keen to take advantage of this investor interest, new crypto coins and tokens have emerged on the global market. And perhaps one of the most intriguing is the Numeraire (NMR)…
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Wednesday's monetary policy decision is weighing heavily on Bitcoin, with the Fed expected to deliver a 75bps hike. There is also nervousness around cryptos in general due to the White House's plans to regulate the industry.
Ethereum's "the Merge" upgrade is now complete. The overhaul transitions its blockchain from proof-of-work to proof-of-stake. According to the Ethereum Foundation, this will result in its energy consumption dropping by 99.95%.
The hotter-than-expected CPI rate yesterday hurt bitcoin. Headline inflation did not fall as much as hoped, and core CPI was much hotter than anticipated. The Fed will continue to hike, and risk-sensitive instruments will remain under pressure, including cryptocurrencies.
BTCUSD is sensitive to interest rates. Yesterday's real rate appreciation (up red arrow) coincides with the decline in Bitcoin (down arrow). As such, it's no surprise that BTCUSD is currently trading below $19K. As long as the daily stochastic remains in its lower quintile, bearish pressure will be present.
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