Bitcoin Tumbles As USD Bounces Back

Dollar enjoying some long awaited reprieve

The dollar has been very much out of favour since peaking last March but recent moves in the Treasury market have given it new life.

Should risk appetite in the markets deteriorate further in the coming weeks, it could see its popularity flourish once more. Of course, that’s highly dependent on the Fed not delivering a hammer blow just as its finding its feet again. The greenback finds itself back around the lows of the last six or seven years, levels that were last tested back in early 2018. Given how rapid its fall from grace has been, we may be seeing some profit taking kicking in just as the mood turns a little sour.

I don’t think we’re quite going to see the reversal in fortunes we saw three years ago but a little reprieve in the near-term may be on the cards.

A bump in the road for bitcoin

It’s not been a great 24 hours for cryptocurrencies, with the global market cap tumbling more than 20%, matched more or less by bitcoin which is both heavily dominant in the space and the primary driver of it. While this is a major drop in a single day, it’s worth putting it into some perspective.

The price fell to levels seen less than a week ago. A 20% drop in most markets put it into a technical bear market. With cryptos, I don’t feel that rule applies. I’d barely call it a correction. Just a little froth off the top. I wouldn’t be surprised if it reversed these declines by the end of the week, if not sooner.

I wouldn’t be too quick to cheer the passing of the crash, though. Unless we see another day or two of moves like this, it isn’t it. It’s a bump in the road.

This volatility is going nowhere and today should be a warning to anyone that thinks this only moves quickly in one direction. As the FCA warned, with bitcoin you should be prepared to lose everything.

Credit 

Caution:

Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognize that for factors outside your control you may lose all of the money in your trading account. Many forex brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. Smart Analysis Pvt takes not responsibility for loss incurred as a result of our trading signals. By signing up as a member you acknowledge that we are not providing financial advice and that you are making a the decision to copy our trades on your own account. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of our signals or advice on forex related products on this website.

PayPal

Credit  & Debit Card

  • Black Facebook Icon
  • Black Instagram Icon
  • Black YouTube Icon

© 2023 by Personal Life Coach. Proudly created with Wix.com