Bitcoin and stocks fall; Analysts see the risk of further downside
Hi, my name is Jimmy He, here to take you through today’s highlights and news on the crypto market.
Bitcoin was on its way up in Friday trading, and even took $ 22,000 at some point early in the day before going down to the previous day’s perch close to $ 21,500.
The largest cryptocurrency by market value traded at around $ 21,800, roughly flat, but more on the green side in the last 24 hours.
Bitcoin has had a rare up week so far, jumping over 14% since Monday, sweeping up the same optimism that has led equities higher this week, among encouraging signs that the US Federal Reserve will not deter in the fight against inflation. Bitcoin has been rising for three days in a row.
Still, the rally has done little to impress a number of analysts, who have yet to see evidence of a long-term rise in prices that would take bitcoin beyond the current upper threshold of the low $ 20,000 range over the past month.
“Since the beginning of the month, BTC / USD has increased by more than 17%, which looks like an impressive result, but only at first glance,” wrote FxPro senior market analyst Alex Kuptsikevich in an email about bitcoin / US dollar- the couple. “The thing is, bitcoin was running as low as possible at the end of June, and the current notable increase is just a rise to levels three weeks ago.”
Kutpsikevich said BTC is still below the 200-week average, and sales on Friday morning indicate that there is still “a significant supply overhang from sellers.”
Bitcoin is over 50% down from early 2022 levels and over 68% from the all-time high in November 2021.
Analysts at the crypto exchange Bitfinex said on Friday that the S & P 500’s rally this week and recurring technology shares increased risk appetite, and supported BTC’s price despite a wave of recent liquidations and solvency problems in the crypto area.
“It will be interesting to see if a lively cryptocurrency market in the last 24 hours leads to more purchases this month,” Bitfinex wrote to CoinDesk.
Most altcoins were recently higher on Friday, with the Internet Computers ICP leading the lists, up 7% over the last 24 hours. Ether (ETH), the second largest cryptocurrency by market value, fell 0.4% in the same period.
Latest prices
●Bitcoin (BTC): $ 21,800 +0.9%
●Ether (ETH): $ 1238 +0.2%
●S&P 500 daily close: 3,899.38 ,10.1%
●Gold: $ 1741 per troy ounce +0.2%
●Ten-year government return daily close: 3.10% +0.09
Bitcoin, ether and gold prices are taken around 4 pm New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the spot price for COMEX. Information on CoinDesk indexes can be found at coindesk.com/indices.
Trading volume increased higher at Binance, the world’s largest cryptocurrency exchange by trading volume, after its worldwide, zero-trading fee policy was published on Friday morning. Zero trading fees for 13 cryptocurrencies began Friday at 14:00 UTC (10 am ET). The move caused an explosion in trading on the stock exchange, with the spot volume for bitcoin / tether (USDT) rising to 320,000 coins in hours. The stock market has not had such a high volume in a whole day since March 2020.
Binance chief Changpeng Zhao attributed the increase to people trying to gain VIP levels through high trading volumes. “We want to exclude BTC trading from VIP calculations,” he tweeted. «Remove all incentives to clear trade. Announcement with details coming soon. “A laundry shop occurs when an investor buys and sells an asset for the purpose of inflating the price artificially. Read more here.
Sector classifications are given via Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive and standardized digital asset classification system. The CoinDesk 20 is a ranking of the largest digital assets by volume on trusted exchanges.
