stock After the investor-backed “red tsunami” failed to materialize, it wobbled. The S&P 500 then hit new lows after a flash flood. When Binance scrapped its rival’s deal to buy FTX, Bitcoin Sell below $16,000, killing long position investors.
There is no denying the growing correlation between Bitcoin and risk assets. FTX news has had a huge impact on asset prices. Once the second largest cryptocurrency exchange in the world, he told investors that FTX would likely go bankrupt without capital. Therefore, all ships were sinking in a cipher commotion.
All this unexpected noise comes ahead of the hotly anticipated US CPI, which will be a sensitive indicator of how high the FOMC will set rates.
Bitcoin spillovers cannot be ignored, and given the wide holdings of the cryptocurrency, investors in long positions have massively stepped out of the way, prompting investors to invest more in other assets to cover margin calls. A mandatory liquidation may take place.
Unfortunately, there is no lender of last resort for crypto buyers. Therefore, liquidation chasers in the industry continue to sell various cryptocurrencies and native FTX coins amid the growing contagion effect of cryptocurrencies, which could result in a long sell-off leg. In fact, this could be a tipping point for crypto after investors were left with a series of major industry bankruptcies earlier this year.
Of course, when it comes to the midterm elections, it hasn’t been a good outcome for Democrats either. The purple dilemma may be the best way to explain the red-blue tangle that emerged on Wednesday. But it was probably not the friendliest to market participants, many of whom wanted a clearer denunciation of the Democrats given the realities of inflation.
Volumes outside of specific risk events this week were a bit thin, but the theme is likely to continue to outperform US CPI today, and excessive risk-taking is likely to be curtailed. Economists are adjusting their headline and core forecasts higher as the numbers are a little stronger than expected.
crude oil Prices fell overnight after Energy Information Administration reported bearish on consensus crude stock An increase of 3.9 million barrels for the week of Nov. 4. Unfortunately for the oil bulls, this was just the tip of the iceberg. China is in the taillights, rather than the headlights, as bearish economic news headlines pour in and quickly fade as optimism about reopening soars. In local covid cases it weighs like an anvil in the oil market.
Oil spills, combined with a broader risk decline and a strong US dollar in the face of hotly anticipated US CPI data, are not the answer for many oil investors.
The US dollar was choppy during the New York session, but the travel direction turned higher ahead of tonight’s US CPI printing as weak Chinese data sent growth concerns echoing in the G-10 FX market. I was.
THB traded at its highest level since 19th September. This is due to the strong foreign investment flows, likely due to optimism in the travel sector.