Bitcoin hits $37.5K, stocks recoup losses ahead of Wednesday’s FOMC statement

The dominant sentiment of doom and gloom in the crypto market shifted toward hope on Jan. 25 after the price of Bitcoin (BTC) climbed to $37,500 briefly as stock markets staged a midday rally that recovered most of the losses from Jan. 24. Even with Jan. 25’s recovery, global markets remain in a state of flux, primarily due to uncertainty over the U.S. Federal Reserve’s plan to raise interest rates in the coming months, with the latest signal indicating that the first rate hike will come in March. Data from…

House members call for an end to lawmakers trading stocks — is crypto next?

Congresspeople currently HODLing or actively trading in crypto may have to stop doing so while in office if recent pushes to ban lawmakers from investing in stocks gain enough support. In a Monday letter addressed to Speaker Nancy Pelosi and Minority Leader Kevin McCarthy, 27 members of the U.S. House of Representatives called for action “to prohibit members of Congress from owning or trading stocks.” Among the bipartisan group of lawmakers who signed onto the letter was Illinois congressperson Bill Foster, who is also a member of the Congressional Blockchain…

No, Tech Stocks Aren’t Driving Crypto Prices

Yet the narrative of bitcoin offsetting the devaluing dollar is even weaker than the one about it being a tech-related investment. The correlation coefficient between bitcoin and the U.S. Dollar Index is just -0.13. Against U.S. bonds, represented by the iShares 20+ Year Treasury Bond ETF (TLT), it is just -0.02. In other words, no relationship at all. Author: Lawrence Lewitinn Source link

Crypto-Exposed Stocks Sink Amid Bitcoin’s Decline, Broader Market Rout

Cryptocurrency stocks were also falling amid a broader stock market rout, with technology shares bearing the brunt of the recent downtrend. The tech-heavy equity index Nasdaq has fallen 5% this week and was down 1% on Friday. The index fell through some key technical support levels, including the 200-day moving average, for the first time since April 2020, Craig Erlam, senior market analyst at Oanda Corp, told clients in a note on Friday. Author: Michael Bellusci Source link

Bitcoin bounces at $41K as optimism increases over stocks correlation

Bitcoin (BTC) rebounded strongly from $41,000 during Jan. 20 as bears hoping for a step into lower territory stayed disappointed. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView Data from Cointelegraph Markets Pro and TradingView showed BTC/USD adding $1,000 after dipping to near the $41,000 mark for the first time since Jan. 11. In what could be a temporary reprieve, Bitcoin nonetheless stayed rangebound, with no noticeable attacks on resistance — behavior all too familiar for spot traders in recent days. “Good bounce from Bitcoin, but I’d be happier if we reclaim…

Bitcoin Price, Stocks, Set to Correct If Fed Fails to Extend Stimulus

A recent newsletter to Delphi Digital clients delved into the economic aftermath of the coronavirus pandemic and how the current fiscal stimulus package from the U.S. Federal Reserve could be propping up equities markets and the entire economy.   According to the firm, COVID-19-related government spending has breached the $1.1 trillion mark, bringing June’s monthly budget deficit to $864 billion, the worst in U.S. history. This has pushed the country’s deficit to $2.7 trillion for the first half of 2020.  As the Federal Reserve continues to print money to bolster the…

Stocks TD9 Sell Sign Flashes Yet Bitcoin Traders Expect Higher Price

The TD9 sell indicator emerged on the S&P 500 chart across various time frames. Considering the heightened level of correlation between Bitcoin and stocks, it might hint at a short-term BTC price pullback. But cryptocurrency traders seemingly remain unfazed by the vulnerability of stocks. Several traders anticipate Bitcoin to rally towards the mid-$9,000s despite the TD9 signaling for a correction. What is the TD9 system, and why could it hint at a BTC pullback? A TD9 sell signal is an indicator part of the widely-cited TD Sequential system. It spots…

Former Chinese Official Says CBDC Will Pave Way for Digital Stocks

Xiao Gang, the former chair of the China Securities Regulatory Commission, says in his latest book on China capital market reforms that the development of a central bank digital currency (CBDC) will pave the way for digital stocks. Stocks and currencies are separate entities in traditional finance, however blockchain-based digital currencies blur the boundaries between the two and raise new possibilities. Xiao adds that “digital stock is the natural product of digital currency in the future.”  Before that can happen a number of challenges that need to be explored in…

Correlation Between Bitcoin Price and Stocks Reaches a New All-Time High

Lately, Bitcoin price has been showing record-high levels of correlation with traditional markets and on July 9 the correlation between the S&P 500 and BTC reached a new all-time high.  Data from Skew shows that the one-year realized correlation reached 0.38 on Thursday, July 9 and this came after the metric had reached new highs earlier in the week. Bitcoin – S&P 500 Realized Correlation. Source: Skew The correlation with traditional markets has been growing at a steady pace recently, with the one-year reaching consecutive new all-time highs. Data from…