Crypto Today: Bitcoin recovery; UK bond buying might affect bitcoin; Has Bitcoin hit bottom months ago?
CryptoPress
CryptoPress
Bitcoin recovery
Bitcoin scored a win this quarter, yet the magnitude may seem small for an asset class with outsized gains until recently.
As stated by some experts, Wall Street believes cryptocurrencies have bottomed out and will become an attractive diversification strategy until Treasury yields regain strength.
Bitcoin rose 3.7%, trading at $19,392, while MSCI’s MSCI All Country Stock Index and Bloomberg’s Global Total Return Bond Index both fell 7%. It’s another indication that cryptocurrency prices may have stabilized after declines earlier this year. The shares are near 2022 lows.
The small improvement stands out after a 60% loss in the second quarter. The Fed’s rapid rate hike, strong inflation and geopolitical uncertainties have affected all asset sectors. The Bloomberg Dollar Spot Index is up 6% since June 30.
Bitcoin is approaching a historically good time of the year. Since 2010, it has gained in the fourth quarter two-thirds of the time, up 33% on average.
UK bond buying might affect bitcoin
The stock market rose in the previous session after the U.K.’s central bank announced emergency asset purchases to restore “orderly market conditions” amid the pound’s unprecedented collapse.
Finder crypto expert James Edwards said the bank’s action “may be fascinating for bitcoin.”
If the strategy is prolonged or other governments follow suit, bitcoin, which benefited from aggressive money-printing tactics in 2020 and 2021, might find increased interest.
Bitcoin’s story as a safe-haven asset or inflation hedge hasn’t materialized, but “it looks to have found clear support right around $20,000 for many months”
“This gives a fresh chance for bitcoin, which may find a new audience among millions of afflicted residents,” he added.
Edwards stated “if central bank currencies continue to drop and quantitative easing returns on a larger scale, bitcoin and cryptocurrency markets might witness a rebirth”
Has Bitcoin hit bottom months ago?
That’s what experts like Thomas Dunleavy, senior analyst at Messari, and Pranav Kanade, portfolio manager at VanEck, are saying.
While bitcoin hasn’t proved to be an inflation hedge, the asset class characterized by speculation deteriorating macro circumstances might continue to propel crypto as a leading indication of investor risk.
Bitcoin and other cryptocurrencies continue to be among the worst performing risk assets this year, with drawdowns of 60% for bitcoin and as high as 84% for other coins like as Avalanche (AVAX).
But although the Nasdaq (IXIC) dropped 2.7% in Q3, the S&P 500 (GSPC) dropped 4%, and the Dow (DJI) dropped 5.4% as of market closing on Friday, Bitcoin remained almost unchanged (+1%).
And despite the fact that Ethereum’s Merge update had no effect on scaling throughput, the market saw the move as a positive one.
Ether (ETH-USD), which increased 26% from $1,050 on July 1 to $1,339 on Friday afternoon, has outperformed bitcoin and the majority of other assets since July.
“Crypto comprises fewer than 50 basis points of all global assets today, and there are around 2.5 million daily blockchain users,” stated Pranav Kanade, portfolio manager at VanEck to Yahoo! Finance. “However, there are more than 4 billion smartphone users. For market capitalizations to expand, daily active users must increase.”
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
Latest Content
- Crypto Market Update: April 25, 2024
- Renzo’s Restaked ETH Depegs to $700: DeFi Platforms Gearbox and Morpho Face Liquidations
- Crypto Market Update: Insights and Trends for April 23, 2024
- On April 24, the $RTF Token from Oleksandr Usyk’s READY TO FIGHT Project Will be Listed on WhiteBIT
- Crypto Market Update: Key Trends and Insights for April 22, 2024
Related
- MicroStrategy Announces Second Quarter 2021 Financial Results July 29, 2021 04:01 PM Eastern Daylight Time TYSONS CORNER, Va.–(BUSINESS WIRE)–MicroStrategy® (Nasdaq: MSTR), the largest independent publicly-traded business intelligence company, today announced financial results for the three-month period ended June 30, 2021 (the second quarter of its 2021 fiscal year)....
- Crypto Events Archive A growing list of past crypto and blockchain events from around the world. Conferences, workshops, meetups, hackathons, conferences....
- This could be you: how it is to live with high inflation A Spanish tourist visited Argentina and was surprised by the country’s inflation, exchange rate, and saving habits....
- Lowest Cost Bitcoin-Linked ETF to Launch on November 16: VanEck Bitcoin Strategy ETF (XBTF) Lowest Cost Bitcoin-Linked ETF to Launch on November 16: VanEck Bitcoin Strategy ETF (XBTF)...