Coin-Miners - Crypto Currency Tracker logo Coin-Miners - Crypto Currency Tracker logo

Seeking Alpha 2022-12-05 18:34:53

Bitcoin remains below 200-day moving average in disconnect from US stocks

Bitcoin ( BTC-USD ) is currently lagging U.S. stocks, which are slowly starting to show signs of recovery following a protracted period of risk-off sentiment, CoinDesk reported . Investors appear to be returning to risk assets - but not bitcoin ( BTC-USD ) - amid reports that inflation may have peaked and commentary from Federal Reserve Chair Jerome Powell indicating that the pace of rate hikes may be eased as soon as its meeting next week . The top cryptocurrency, which usually tracks U.S. markets, is bucking this trend as the collapse of troubled exchange FTX, whose native crypto FTX token ( FTT-USD ) also spiraled, has done far more damage to sentiment in the crypto space. Bitcoin ( BTC-USD ) is currently flat at $17.1K, firmly below its 200-day moving average . On the other hand, major market indices - S&P 500 ( SP500 ), Dow Jones ( DJI ) and Nasdaq Composite ( COMP.IND ) - are all trading above their respective 200-day moving averages. All three indices posted monthly gains in November and October, but started the week with hefty losses amid renewed concerns about the Fed's rate hike path . "Without the FTX implosion, bitcoin might have been trading at $29K by now - instead of $17.2K (or +69%). But with a supportive macro backdrop, those levels might be achieved in 2023," said Markus Thielen , head of research & strategy at crypto services firm Matrixport. Thielen expects "a weaker greenback would support crypto prices and with declining inflation expectations, macro would become a tailwind for risk assets and crypto". Bitcoin slipped to a two-year low of $15.5K last month as the contagion from the FTX implosion continued. Standard Chartered believes bitcoin ( BTC-USD ) will spiral further and could tank another ~70% to $5K in 2023 . But Bank of America believes the increased regulatory scrutiny after the FTX fallout may enable greater institutional engagement and accelerate industry maturity .

freebitcoin
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.