US dollars recovers, Bitcoin holds $ 20,000 while the Fed decision is emerging
US dollars recovers, Bitcoin holds $ 20,000 while the Fed decision is emerging
- After the US dollar had fallen to a three-week low at the beginning of this week, the currency on Thursday showed a 0.5 % sign of recovery with an increase in the US dollar index
- The ECB increased the interest rates by 75 basis points again on Thursday after inflation in the euro zone in September
supported by rising stocks and a fluctuating US dollar Bitcoin has kept its position over $ 20,000 since Tuesday. It is an important level of resistance that was last reached at the beginning of October, but the upcoming decision of the central bank and the attractive dollar could end the recovery of Bitcoin.
dealers are looking forward to the continuation of Bitcoin's aid run. The largest digital currency moved around $ 20,600 on Thursday morning after it used to approach the $ 21,000 in the day. The S&P 500 and Nasdaq opened lower and lost 0.2 % or 1.4 %.
"Bitcoin behaves like a commodity," said Nick Saponaro, CEO of the blockchain divi project. "Like gold, it is a value preservation means that has a benefit. So there is a demand for it, no matter what happens in the macroeconomic environment."
After the US dollar had fallen to a three-week low at the beginning of this week, the currency showed signs of a relaxation on Thursday, with the US dollar index (DXY) increasing by 0.5 %. Bitcoin's rally was accompanied by the decline in the dollar, since a weaker currency, according to analysts, stirs up the risk of risk of investors.
"Gold increased by 0.65 % thanks to the weaker dollar and the continued decline of the yields, in the middle of the wider reserved orientation of the expectations of central bank policy," said Tom Essaye, founder of Sevens Report Research.
"There are first signs that both the dollar and interest rates begin to turn, but until we have clearer evidence that both actually reach their peak, it will be too early to call out a low point," he said.
Bitcoin has been acted sideways for months, which has an unusually low volatility - the value of the oldest continuously used currency in the world, the British pound, was Almost equally in the river . The volatility of the digital currency compared to the indices NASDAQ and S&P 500, according to data from the research company Kaiko, reached a two -year low at the beginning of this week. It is expected that each significant movement will lead to a volatility expansion in one of the two directions.
inflation and global liquidity
While the stock market volatility gradually subsides - the VIX has fallen to under 30 in the last five days - economists are still concerned about global liquidity.
"After more than a decade of abundant liquidity and relative calm on the markets, the interest rate increases of the central banks were accompanied by an increased market volatility to the containment of inflation", wrote analysts of the international monetary fund in a message on Thursday. "Market liquidity has deteriorated in all investment classes, especially in the past few weeks, since the increased uncertainty about economic outlook and monetary policy has significantly reduced the risk of risk of investors."
The European Central Bank continues to focus on reducing inflation in the euro zone and, as in the last month, has once again increased its primary interest rates by 75 basis points on Thursday. In September, inflation in the euro area reached 9.9 %.
The Federal Reserve should meet next week and make an interest decision on Tuesday. According to data from prices, the futures markets currently have a probability of 91.8 % that the central bank decides for an increase of 75 basis points CME group . Cryptos and stocks will benefit from slowing the interest rate increases, be it in November or December.
"The markets have recovered due to the idea that the worst of the global interest rate increases either is already behind us or two will soon be behind us," said essaye.
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After the recovery of the US dollar, Bitcoin holds $ 20,000 when Fed Decision Looms first appeared on block works.