Bitcoin on the verge of a fall

By 23/09/2021News
morning-news

Gold  1764,595
(-0,17%)

EURUSD   1,1709
(+0,14%)

DJIA  34235,50
(+0,21%)

OIL.WTI  72,395
(+0,58%)

DAX  15484
(+0,01%)

Bitcoin, an asset that is very prone to manipulation. Cryptocurrencies are now under the gun during the difficult situation with the quantitative easing programme because they are a risky asset.


Bitcoin

Bitcoin

Why it is not a good idea to consider current positions for buying. First of all the problems in China with Evergrande. Even though it is a local Chinese company, but still if things go very badly there, it will affect the whole financial system. Not as dramatically as with Lehman Brothers, but the volatility will definitely increase. Money will very quickly run away from risky assets to a calmer place.
The second reason is the Fed will sooner or later begin to roll back its stimulus programme and this will once again affect risky crypto assets.
Another hint that cryptocurrencies are in trouble was the US Federal Reserve’s announcement that Stablecoins pose a serious threat to the financial security of countries around the world. Unregulated analogues of official money can undermine countries’ economies at any moment, and regulation of such currencies by states is very close.
The technical picture for bitcoin does not show anything good either. On the higher timeframes, a bearish movement is already visible. Risk appetite will fall more and more as the situation in the global economy is getting worse.
What can be said optimistically. The cryptocurrency infrastructure is developing. Countries are officially accepting bitcoin. Many countries are considering digitalising their currencies, so bitcoin is not going anywhere. Right now, this cryptocurrency should be seen as a highly volatile investment and nothing more. But while the turmoil of support contraction hangs over all global financial markets, it is worth refraining from buying such assets.

09.30 Markit Composite Business Activity Index for September
13.00 Bank of England meeting minutes
14.30 US initial jobless claims


Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.