Bitcoin under pressure as it decouples from stocks – Crypto News
October 13, 2023 12:28 pm
Bitcoin clocks negative week as stock markets rebound
FTX trial and Middle East conflict undermine the sector
Bitcoin price stuck between 50- and 200-day SMAs
Cryptos trade in their own world
Bitcoin and most major altcoins are on track to post a red weekly candlestick, exhibiting significant correlation breaks with other traditional assets. Firstly, we saw Bitcoin prices falling in the first three days of the week in a period when stock markets were advancing. What’s more interesting though is that the king of cryptos managed to finish Thursday in the green despite the stronger-than-anticipated US CPI report.
Generally, an upbeat inflation print suggests that the Fed has to do more in its effort to tame inflation, which practically means an additional 25 basis points rate hike or interest rates to remain elevated for a protracted period. Both scenarios of course are negative for risk-sensitive assets, but this time around Bitcoin seems unsusceptible. Another surprising fact is that in the beginning of the week the dollar was losing ground in lockstep with cryptos, while as mentioned earlier Bitcoin notched minor gains on Thursday in a day when the dollar was surging across the board due to the hot US inflation report.
These latest movements in both the greenback and Bitcoin are debunking the theory that they are inversely correlated. Overall, it seems that Bitcoin is indeed decoupling from traditional assets, but it is still unclear which forces are behind its latest price fluctuations.
Dark spots in the sector getting exposed
Samuel Bankman-Fried’s trial has attracted investor interest in the past two weeks, with cryptocurrencies returning to the headlines but most probably for the wrong reasons. In her testimony, Caroline Ellison the CEO of Alameda and SBF’s ex-girlfriend disclosed many potential financial crimes that occurred in FTX such as creating fake balance sheets and withdrawing customers funds to repay loans. Of course, these revelations undermine the integrity of the whole sector, which has been already traumatized by a series of scandals.
In other news, there were some reports stating that the Israeli police seized crypto accounts that were used by Hamas to collect funding. This development reinforced once again that blockchain transactions cannot be easily tracked, enabling terrorists or fraudsters to exploit cryptos for illegal activities.
BTCUSD hovers between SMAs
BTCUSD has been on the retreat in the last few daily sessions after repeatedly failing to jump above the 200-day simple moving average (SMA). However, the 50-day SMA has capped the price’s downside, preventing further declines for now.
Should the price break below the 50-day SMA, the recent support of $25,980 could act as the first line of defence. Even lower, Bitcoin could test the September low of $24,915.
On the flipside, bullish actions could propel the price towards the September resistance of $27,490 ahead of the recent peak of $28,592.
Bitcoin clocks negative week as stock markets rebound
FTX trial and Middle East conflict undermine the sector
Bitcoin price stuck between 50- and 200-day SMAs
Cryptos trade in their own world
Bitcoin and most major altcoins are on track to post a red weekly candlestick, exhibiting significant correlation breaks with other traditional assets. Firstly, we saw Bitcoin prices falling in the first three days of the week in a period when stock markets were advancing. What’s more interesting though is that the king of cryptos managed to finish Thursday in the green despite the stronger-than-anticipated US CPI report.
Generally, an upbeat inflation print suggests that the Fed has to do more in its effort to tame inflation, which practically means an additional 25 basis points rate hike or interest rates to remain elevated for a protracted period. Both scenarios of course are negative for risk-sensitive assets, but this time around Bitcoin seems unsusceptible. Another surprising fact is that in the beginning of the week the dollar was losing ground in lockstep with cryptos, while as mentioned earlier Bitcoin notched minor gains on Thursday in a day when the dollar was surging across the board due to the hot US inflation report.
These latest movements in both the greenback and Bitcoin are debunking the theory that they are inversely correlated. Overall, it seems that Bitcoin is indeed decoupling from traditional assets, but it is still unclear which forces are behind its latest price fluctuations.
Dark spots in the sector getting exposed
Samuel Bankman-Fried’s trial has attracted investor interest in the past two weeks, with cryptocurrencies returning to the headlines but most probably for the wrong reasons. In her testimony, Caroline Ellison the CEO of Alameda and SBF’s ex-girlfriend disclosed many potential financial crimes that occurred in FTX such as creating fake balance sheets and withdrawing customers funds to repay loans. Of course, these revelations undermine the integrity of the whole sector, which has been already traumatized by a series of scandals.
In other news, there were some reports stating that the Israeli police seized crypto accounts that were used by Hamas to collect funding. This development reinforced once again that blockchain transactions cannot be easily tracked, enabling terrorists or fraudsters to exploit cryptos for illegal activities.
BTCUSD hovers between SMAs
BTCUSD has been on the retreat in the last few daily sessions after repeatedly failing to jump above the 200-day simple moving average (SMA). However, the 50-day SMA has capped the price’s downside, preventing further declines for now.
Should the price break below the 50-day SMA, the recent support of $25,980 could act as the first line of defence. Even lower, Bitcoin could test the September low of $24,915.
On the flipside, bullish actions could propel the price towards the September resistance of $27,490 ahead of the recent peak of $28,592.
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