Higher yields push bitcoin below $19K
Source: www.tradingview.com
The 10-year real rate is appreciating. As a result, its stochastic has moved above 80 (red arrow), and the yield is in its bullish channel (top candlestick). In response, BTCUSD (bottom candlestick chart) shows signs of decline and has dropped into its bearish channel between the lower blue and red bands.
As a result, the cryptocurrency is under pressure and is trading below $19K. As long as inflation remains a worry and the prospect for higher rates persist, demand for risky assets, including cryptocurrencies, will be facing headwinds.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.