good morning. Here’s what’s happening:
price: Bitcoin rose early, but then fell after Federal Reserve Chairman Jerome Powell dampened the enthusiasm stemming from less aggressive rate hikes with hawkish comments.
insight: Is Dr. Copper’s recent turnaround a positive sign for Bitcoin?
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S&P 500 Daily Close Price
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Government Bond Yield 10 Years
BTC/ETH price per CoinDesk Index; Gold is the COMEX spot price.Price around 4pm ET
Bitcoin Seesaws, Holds $17.8K
Even after U.S. Central Bank Chairman Jerome Powell recently cut interest rate hikes to 50 basis points, investors are not saying the Fed has put an end to its financial hawks. Bitcoin looked poised to maintain momentum this week before cooling off.
The largest cryptocurrency by market capitalization recently traded at $17,811, about 24 hours ago. BTC broke above $18,300 earlier in the day following an unexpected slowdown in November inflation data and the Fed’s expected dovish turn. But in his press conference after the Federal Open Market Committee (FOMC) interest rate announcement, Powell returned to the months-long theme that rising inflation is the biggest threat to the economy.
“50 basis points is still a historically large increase and there is still a long way to go,” Powell said at a press conference following the FOMC’s statement.
Ether followed a similar pattern, trading at $1,308 after rising earlier in the day, down about 1% from Tuesday. UNI, the token of decentralized exchange Uniswap, and LINK, the token of software platform Chainlink, fell 3.2% and 3.1% respectively, while most other major cryptocurrencies were in the red.
of CoinDesk Market Index The (CDI), a metric that measures the performance of cryptocurrencies, recently dropped 0.33%.
Equity indices troubled by Chairman Powell’s remarks ended with the tech-heavy Nasdaq and S&P 500 down 0.8% and 0.5% respectively. The consumer price index fell to his 7.1% on Tuesday, below his 7.3% forecast by economists responding to the FactSet survey.
The Federal Reserve Board’s latest interest rate raises the Federal Fund’s target range to 4.25% to 4.5%, the highest level in 15 years.Powell sent a signal The final rate, which is the peak rate of the current rate hike cycle expected over the next year, will likely exceed 5%. The Federal Funds Rate is the interest rate that banks charge each other when they borrow or lend money.
Meanwhile, US Senators Elizabeth Warren (D-Massachusetts) and Roger Marshall (R-Kang) said: Bill to crack down on money laundering Funding terrorists and rogue states via cryptocurrencies. The Digital Asset Anti-Money Laundering Act will bring Know Your Customer (KYC) rules to crypto participants such as wallet providers and miners, as well as digital asset mixers, tools designed to help financial institutions obscure the origin of funds. It is prohibited to trade.
Edward Moya, senior market analyst at forex market maker Oanda, said in an email that the current Congress is in its final week and unlikely to pass the bill, but said, We will address national security concerns accordingly.” Crypto companies must play by the same rules that apply to banks and traditional companies. ”
biggest price riser
“Dr. Copper Offers Encouragement to Bitcoin Investors
By Glenn Williams Jr.
Having moved into positive territory following the Thanksgiving holiday, the correlation between Bitcoin and copper continues to climb.
The increase is significant given that copper is traditionally associated with economic health. Analysts often see copper as a growth indicator and affectionately refer to it as “Dr.” Copper” for its professional ability to predict trends. Therefore, doing well for copper bodes well for the economy, which in turn bodes well for Bitcoin.
The market is positive on copper, with futures contract prices up 8% over the past three weeks. If past relationships are correct, this trend implies market confidence in the US economic outlook.
In contrast, Bitcoin (BTC) maintains a strong negative correlation with the US Dollar Index (DXY). Investors will keep an eye on the index in the coming weeks, especially after the Fed’s Federal Open Market Committee (FOMC) adjusted rate hikes to 50 basis points from the earlier more aggressive 75 basis points on Wednesday.
Yet Fed Chairman Jerome Powell was unexpectedly hawkish in his post-interest-rate comments, reiterating his long-standing concerns about inflation.
Will Bitcoin follow Dr. Copper’s prescription or follow the lead of the US Dollar Index? The coming weeks will be worth watching.
8:30 AM HKT/SGT (00:30 UTC) Australian Unemployment SA (November)
10:00 AM HKT/SGT (2:00 UTC) China retail sales (YoY/November)
9:15 PM HKT/SGT (13:15 UTC) European Central Bank Monetary Policy Decision Statement
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