Due to a holiday in the US, the first day of the week was marked by a lack of price movements for most assets. We had an opportunity to switch from forex and futures and discuss the crypto market.
Bitcoin/Dollar Chart of the Day
After a confident breakthrough of the level of 10.000$, the second day shows a strong correction. From last week’s highs, the first crypto currency dropped by 8%. At the same time, the other altcoins out of the top 10 have fallen much harder.
The following dynamics can be traced. When the market grows, altcoins grow much faster than BTC, and when it falls, they fall much faster. This tells us that Bitcoin remains the only cryptographic currency attractive for long-term investors. All other tokens are the province of speculators due to the extremely high volatility.
Despite the fact that BTC has already shown a 40% growth compared to the beginning of this year, the potential of the movement is not yet exhausted. Halving is expected at the end of May, which will lead to the ruin of at least half of the miners, if the price does not rise by at least another 20-30%. Long-term futures quoted in the US are worth more than the spot price of the bitcoin. This indicates that major investors are also expecting the BTC to grow in the coming months.
The only currency that moved on Monday was pound sterling. The pound/dollar fell by 60 points and came close to the most important level at 1.30. As we noted yesterday, all the positive of the British currency was caused by the negative against the EURO. However, the decline of the European currency has stopped, and therefore the incentives to move from it to the pound have disappeared. Throughout Monday, speculators were fixing profits.
Oil grew for five days in a row. Today will be a critical day for understanding the future movement. After the opening of the American market it is possible to have a strong unidirectional upward movement. If that happens, it is likely that the closing of the day will be the maximum of the current rebound of the black gold.
What awaits us today?
01.30 Minutes of the Australian Reserve Bank
10.30 UK unemployment rate for December
14.30 New York FBI Manufacturing Index for February
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