As the United States gains at the Oct. 17 Wall Street Open, Bitcoin ( ) is headed towards $20,000
Stocks rise as the U.S. dollar falls
Data from Cointelegraph Markets Pro, TradingView indicated that BTC/USD reached $19,672 via Bitstamp. This is 3.5% higher than the weekend’s lows.
The pair rose in line to stocks with the S&P 500 Index and Nasdaq Composite Index both increasing 2.7% and 3.2% respectively within 30 minutes of trading.
This action was combined with weak U.S. data, such as the Empire State Manufacturing Index, that fell to -9.1 in October. It is significantly below the forecast –4.3 and September’s reading of -1.5.
“Manufacturing activity decreased in New York State according to the October Survey,” New York Federal Reserve stated in commentary.
“The general business condition index dropped eight points to 9.1. Twenty-three percent of respondents said that conditions had improved in the past month. Thirty-two percent stated that they had seen conditions worsening.
Michael van de Poppe (founder and CEO of Eight trading company) responded by calling the results “way worse that expected.”
“Top on Yields and $DXY are on the horizon. He predicted that Bitcoin would rally.
The U.S. Dollar Index (DXY), which was tracking 112 and 0.65%, continued to retrace its gains from the previous day.
“Risk asset inflation in 2022 and Fed tightening, despite the world leading towards recession portend anelusive end game,” Mike McGlone (senior commodity strategist at Bloomberg Intelligence), wrote while summarizing new macro analysis.
“The lower price cure in commodities may be required to curb Fed restraints and plummeting money supply.” The cooling of crude oil could be used to refuel Bitcoin or gold.
Research reinforces impending volatility
Although traders had already predicted some relief for crypto markets in the weekly timeframes of January, other perspectives emphasized that nothing has changed long-term for Bitcoin.
Related: 5 Things to Know in Bitcoin This Week
“It’s very rare for BTC markets reach periods of such low realized volatilty with almost all previous instances preceding an extremely volatile move,” Glassnode , an on-chain analytics firm, stated in its latest edition of The Week On-Chain.
Researchers including Checkmate, the lead analyst, argued that the market has reached a crucial point.
They continued, “Historical examples of 1-week rolling volatility lower than 28% in a bear markets have preceded significant price movements in both directions.”
Glassnode concluded that, despite potential price breakouts in BTC-denominated forwards open interest reaching new all-time highs and other indicators, there was little discernible directional bias within futures markets.
The newsletter stated that volatility is possible and Bitcoin prices will not be stable for long.
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