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Inflation worries drive Bitcoin to R716,000.00 as global stocks fall


Cryptocurrency prices continue to rise, despite risk-off behavior in traditional markets. S&P 500 E-mini futures are down, indicating that the benchmark stock index will have a weaker start. Bitcoin prices appear to be insulated from the volatility of traditional financial markets. Despite a large decline in the S&P 500, bitcoin’s price remained constant in the R148,631.30 – R163,494.43 range. The cryptocurrency market suffered as a result of cyberattacks and Commodity Futures Trading Commission charges.

  • Investors are pleased by the cryptocurrency’s resilience and anticipate a significant increase in October.
  • This lower likelihood of regulatory action against crypto markets appears to be shielding Bitcoin from the volatility of traditional markets.
  • In his statement to Congress on Thursday, Mr Powell stated that the Fed has “no intention” of prohibiting cryptocurrencies, including stablecoins.
  • However, the Fed is projected to reduce its support, potentially limiting the rising trend.

Bitcoin prices continue to rise, despite the customary risk-off behavior in traditional markets. Investors are pleased by the cryptocurrency’s resilience and anticipate a significant increase in October.

At 11:16 UTC, the cryptocurrency was up 8% on the day, approaching R704,512.36 There is also encouraging news in the broader crypto market, with smart-contract blockchain native coins such as VeChain, Tezos, and Elrond each increasing by more than 8%. The price of ETH has risen by 7% to R48,230.86.

S&P 500 E-mini futures are currently down, indicating that the benchmark stock index will have a weaker start in the next trading days. The dollar index is just below its 12-month high of 1,404.57 against a basket of major fiat currencies.

This lower likelihood of regulatory action against crypto markets appears to be shielding Bitcoin from the volatility of traditional markets. In his statement to Congress on Thursday, Mr Powell stated that the Fed has “no intention” of prohibiting cryptocurrencies, including stablecoins. SEC Chairman Gary Gensler confirmed his support for bitcoin futures-based exchange traded funds last night, provoking Powell’s comments (ETF).

Some experts and traders on Twitter have developed the slang phrase “Uptober,” which alludes to market projections for a rally in October. This means that the crypto world is feeling upbeat.

In any case, October is traditionally a bullish month for the cryptocurrency market, and bitcoin’s recent stability in the face of stock market losses and China’s blanket ban on virtual currency businesses is reminiscent of the cryptocurrency’s tenacity in the face of bad news just before the start of the bull run from R148,631.30 in September and October 2020.

Despite a large decline in the S&P 500, bitcoin’s price remained constant in the R148,631.30 – R163,494.43 range in September and early October of last year. The cryptocurrency market suffered as a result of cyberattacks and Commodity Futures Trading Commission charges filed against BitMEX. The following six months saw an amazing R963,130.82 increase.

It remains to be seen whether history will repeat itself. Rising inflation expectations around the world, as well as falling real or inflation-adjusted bond yields, are fueling a new bull run. However, the Fed is projected to reduce its support, potentially limiting the rising trend.

The Federal Reserve said last month that the taper would begin in the fourth quarter and end as early as mid-2022 if no severe economic shocks occurred.

Fears of a faster Fed taper may arise if today’s personal consumption expenditure data (due at 12:30 UTC) exceeds expectations, which would harm asset prices in general.

Following 3.6 percent year-on-year gains in both June and July, CNBC anticipates that the Fed’s preferred inflation gauge will be mild in August. Analysts at TD Securities predict that the reading will remain unchanged.

In August, the core PCE price index climbed higher than the core CPI, according to PPI data (by an anticipated 0.26 percent against a 0.10 percent increase). According to FXStreet, analysts at TD Securities expect the YoY change will remain high at 3.6 percent.

In September, eurozone inflation reached 3.4 percent, the highest level since September 2008. The information was released early this morning.

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