Bitcoin Soars, but Don’t Get Excited

Jul 28, 2022

https://liquidity-provider.com/app/uploads/2022/07/dizajn-bez-nazvaniya-27.png

Bitcoin and other cryptocurrencies rose on Thursday as investors re-invested in risky assets following the Federal Reserve's latest monetary policy decision. Analysts, however, do not believe this crypto rise has significant power and believe prices will likely plateau at present levels.

Bitcoin has steadily risen since a low of about $18,000 in June, peaking at approximately $24,000 last week before falling again as markets entered this volatile week. The largest cryptocurrency rose following the Fed's monetary policy decision on Wednesday afternoon, giving Bitcoin its best day in a month. Additionally, Bitcoin's price has risen 8% in the last 24 hours to $23,000.

"Bitcoin's short-term picture remains a little unstable," Yuya Hasegawa, an analyst at cryptocurrency exchange Bitbank, wrote in a note.

At this moment, digital assets appear to be nearly totally dependent on macroeconomic considerations. While circumstances inside crypto have affected pricing, such as the fall of hedge fund Three Arrows Capital or a regulatory investigation into exchange Coinbase Global (COIN), the connection between digital assets and equities reigns supreme.

Bitcoin and its counterparts should theoretically move independently of regular financial markets, but they have demonstrated to be substantially tied to equities — particularly tech companies — and have fallen in tandem with the S&P 500 and Nasdaq this year. Bitcoin has recently completed its worst quarter since 2011, with the global market value of the cryptocurrency falling to $980 billion from nearly $1 trillion nine months ago.

At present, the most powerful macro driver is inflation, which is at a multi-decade high, and the Federal Reserve's response to it. On Wednesday, the Fed announced that interest rates would be raised by 75 basis points or three-quarters of a percentage point.

Markets appeared to take comfort from the Fed's commitment to battling inflation and the suggestion that rate rises may stall soon, boosting equities and cryptos alike.

However, recession dangers persist. The 75 basis-point rise is the fourth this year and only the second 75 basis-point increase since 1994, with the first being in June. The danger is that the United States will enter a recession if the Fed continues to raise rates and reduce economic demand. That uncertainty will likely linger in the digital asset market for some time.

"All markets, including cryptocurrency, are in turmoil. Not much will happen until the economy either breaks up or crashes," Chris Terry, an executive at lending platform SmartFi, wrote in a letter. "We believe Bitcoin will continue to trade in this narrow band of $20,000 plus or minus 10-15%. This should come as no surprise. We might be stuck in this market for weeks and weeks."

The majority of crypto trading is in derivatives such as futures and options based on digital currencies. According to crypto analytics firm CryptoCompare, the number of derivatives traded on exchanges in June was $2.8 trillion, compared to $1.4 trillion for tokens sold on exchanges. Furthermore, there are indications in the crypto futures market that Bitcoin's recent run is stalling.

"A sharp decline in options looks to be threatening the sustainability of current cryptocurrency rise." "The technicals have flipped, and it will be more difficult for crypto prices to continue climbing on short covers," stated Luke Farrell, a trader at cryptocurrency market maker GSR, in a note.

Short covering occurs when traders who have taken short positions - bets that an asset will fall — must purchase back the underlying asset to finish their position, causing the market to rise in price.

"My forecast is for Bitcoin to consolidate between...$19,000 and $23,000 for the last period of the summer, as global macro continues to lead the way," Farrell said.

Beyond Bitcoin, the second-largest cryptocurrency, Ether, surged 13% to $1,650. Altcoins, or smaller cryptocurrencies, were also surging, with Solana up 9% and Cardano up 7%. Memecoins, which were originally meant as online jokes, also benefited, with Dogecoin and Shiba Inu up 7% and 6%, respectively.

Subscribe Our Newsletter

Stock Futures Edge Higher Ahead of Technology Earnings
Stock Market News Live Updates: Stock Futures Edge Higher Ahead of Technology Earnings

Stock futures pointed to a slightly higher open Monday morning as investors expected a flood of earnings reports this week from Big Tech companies, as well as a bevy of smaller corporations across industries.

Stocks
Binance to End Freeze on Deposits From Key EU Payments Network
Binance to End Freeze on Deposits From Key EU Payments Network

According to a source close to the subject, Binance Holdings Ltd. is about to resume taking euro bank deposits from a big European payment network, ending a months-long restriction.

Companies
Anna

A Beginner Guide To The Crypto Analysis Tools.
Successful investment in the crypto world requires constantly studying market trends, monitoring specialized forums and social networks, and conducting technical analysis.

discover
Liquidity Risk

Liquidity Provider

Liquidity Risk

Let's find out what is the notion of liquidity risk, why should a trader get his orders executed instantly, and how to find and pick a reliable LP.

Liquidity

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    What Is a Gamma Squeeze, and How to Trade It?

    What Is a Gamma Squeeze?

    Alexander

    Simple and Compound Interest — How Do They Differ?

    Simple and Compound Interest: How Do They Differ?

    Alexander

    How Strong is The US Economy Today?

    How Strong is The US Economy Today?

    Alexander

    How Do Crypto Liquidity Pools Work in 2023-2024?

    How Do Crypto Liquidity Pools Work

    Alexander

    What Is The Wheel Strategy in Trading?

    What Is The Wheel Strategy in Trading?

    Alexander

    How to Choose a Forex Liquidity Provider in 2023?

    How to Choose a Forex Liquidity Provider in 2023?

    Alexander

    5 Best AI ETFs for 2023-2024

    5 Best AI ETFs

    Alexander

    What Is an Investment Priorities Plan?

    Investment Priorities Plan - Definition

    Alexander

    What is a Token Maker? – Creating Your Own Crypto Token Without Coding Skills

    What is a Token Maker? – Creating Your Own Crypto Token Without Coding Skills

    Alexander

    How Many Days a Year the Stock Market Is Up? – An Investor’s Guide to Long-Term Success

    How Many Days a Year the Stock Market Is Up?

    Alexander

    Invest $100 and Make $1,000 a Day: Best Strategies to Grow Your Money

    Invest $100 and Make $1,000 a Day: Best Strategies to Grow Your Money

    Alexander

    Is Real Estate Investment Trusts a Good Career Path? — Opportunities in 2023

    Is Real Estate Investment Trusts a Good Career Path?

    Alexander

    Is Day Trading Gambling? Most Likely Yes

    Is Day Trading Gambling? Most Likely Yes

    Alexander

    Where to Exchange Currency Without Paying a High Fee — Planning Your Travel Beforehand

    Where to Exchange Currency Without a High Fee

    Alexander

    Is Infinite Banking a Scam? Unveiling the Truth Behind the Concept

    Is Infinite Banking a Scam? The Truth Behind the Concept

    Alexander

    The Dollar Milkshake Theory: Could the US Dollar Become Even Stronger?

    The Dollar Milkshake Theory: Could the US Dollar Become Even Stronger?

    Alexander

    Why “Skip the Latte” is Poor Financial Advice

    Why "Skip the Latte" And "Cancel Netflix" Is Bad

    Alexander

    Is Now a Good Time to Invest? Exploring Investment Opportunities in 2023

    Exploring Investment Opportunities in 2023.

    Alexander

    Best Bitcoin Wallets in 2023: Comparing Features, Security, and Usability

    Best Bitcoin Wallets in 2023

    Alexander

    Top Rising NFT Artists to Watch Out for in 2023 And Beyond

    Top Rising NFT Artists to Watch Out for in 2023

    Alexander

    Insuring Your Future: What Type of Insurance to Buy?

    Insuring Your Future: What Type of Insurance to Buy

    Alexander

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Alexander

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection of Your Digital Assets.

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection

    Alexander

    Roth IRA Guide: What It Is and What You Need to Know.

    Roth IRA Guide: What It Is and What You Need to Know
    Latest News - Liquidity Provider: Business & FinTech Media
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site.