Several largest American companies will publish their financial results this week. BTCUSD and XAUUSD are skyrocketing. What's going on in the markets?
Greatest bitcoin sale in a year!
Bitcoin has fallen enormously amid the wider sell-off in risk assets. The cryptocurrency plunged by nearly 20% this week, marking the largest drop since March. It was mostly driven by an increase in US bond yields. Investors worry that rising yields will push the Fed to tighten support measures which will add pressure on the riskier assets. Therefore, traders are reconsidering their positions on assets.
Concerns over BTC’s efficacy against inflation
The fact that Bitcoin follows risk assets in falling raised questions about its role of hedge against inflation, which actually has been a key reason to buy BTC over the past year. Some investors believe that the surge of cryptocurrencies is just a speculative bubble, which may repeat the story of the 2017 boom and bust.
Musk was the first who sent BTC down
Actually, the BTC’s fall was initially caused by Elon Muck, who tweeted that BTC and ETH prices “seem high”. Then, the sell-off in risk assets reinforced the already fragile crypto. Besides, earlier this week, Bill Gates mentioned that he wasn’t a big fan of Bitcoin. In addition, Treasury Secretary Janet Yellen claimed that BTC was an “extremely inefficient way of conducting transactions.”
After a large drop will come even a larger rise eventually. We see how big corporations start allowing their customers to pay and receive cryptocurrencies through their platforms such as Apple, Tesla, and MasterCard. Major banks like JPMorgan and Goldman Sachs are also active in blockchain as well. Therefore, after a short fall the BTC may go up again to the record highs. The good news for FBS traders is that they can make both buy and sell trades. So a trader doesn’t need to hold already an asset to sell it. Thus, traders have a chance to profit in case of either outcome.
Don't know how to trade cryptocurrencies? Here are some simple steps.
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