Bitcoin (BTC) and spot gold hovered below their key psychological levels on Wednesday as a stronger United States dollar weighed on investors’ appetite for hedging assets. The BTC/USD exchange rate dropped 5.27% to its intraday low of $44,423 but recovered a portion of those losses after reclaiming the $45,000–46,000 range as support. The pair’s recovery also came as an extension to its ongoing rebound from $42,830, a level it reached on Tuesday after falling by more than 18% in the session. Bitcoin’s massive sell-off coincided with a strikingly similar but dwarfed decline in the rivaling gold market. In detail, the …

What is protecting an investment portfolio from potential stock market volatility? As per Bloomberg Intelligence’s Mike McGlone, a merged exposure of Bitcoin (BTC), gold and government bonds. The senior commodity strategist, who sees BTC heading to $100,000, pitted derivatives in a new report representing the three safe-haven assets against the performance of the S&P 500 index, finding that the trio has been outperforming the benchmark Wall Street index at least since the start of 2020. The Bitcoin-Gold-Bonds index took data from the Grayscale Bitcoin Trust (GBTC), SPDR Gold Shares (GLD) and iShares 20+ Year Treasury Bond ETF (TLT). The three …

The heavy selling in the U.S. dollar market at the end of last week assisted Bitcoin (BTC) to climb above $49,000. However, BTC struggled to extend its climb above $50,000, a psychological resistance level, as investors remained cautious about the Federal Reserve's taper timing. In detail, the Fed chairman Jerome Powell delivered a mildly dovish outlook during his speech on Friday at the annual Jackson Hole symposium. At one point, he refrained from providing hints regarding when the Fed would start unwinding its $120 billion a month asset purchasing program. Powell noted that they would begin tapering sometime by the …

Bitcoin (BTC) prices briefly fell below $44,000 on Thursday as the United States Dollar strengthened after the U.S. Federal Reserve policy minutes revealed its intentions to limit its bond-purchasing program this year. Bitcoin risks $45,000 becoming new resistance The spot BTC/USD rate dropped 1.71% to a new week-to-date low of $43,955. The pair’s plunge appeared as a part of a technical correction that started after it had reached a three-month high of $48,176 on Saturday, following a 64.42% price rally. Bitcoin’s latest price decline also surfaced in line with a similar market bias on Wall Street. For instance, the benchmark …

Bitcoin (BTC) reached its highest level in more than two months, with just a few days remaining before the July inflation report. The top cryptocurrency climbed 1.65% to $45,363 on Sunday, continuing the upside momentum that had already seen it jump 21.62% from its low of $37,300 on Thursday. Momentum was strong among Bitcoin rivals as well. Ether (ETH), the second-largest crypto by market capitalization, increased 29.78% from its low of $2,630 on Tuesday, crossing $3,100 on Sunday. Its gains came after Ethereum’s London hard fork went live on Thursday, which should add deflationary pressure to the supply of ETH. …

A recent run-down in the United States Dollar Index (DXY) stopped midway as investors awaited U.S. job data for a guide on the viewpoint for interest rates. Meanwhile, Bitcoin (BTC) moved inversely to the greenback. The DXY rose to its intraday high of 92.195 on Wednesday, up 0.45% from its Friday low of 91.782. The move upside took the index back above its 200-day exponential moving average (200-day EMA; the pink tide in the chart below), at 92.001. The wave was instrumental in protecting the index from aggressive declines in June, serving as support. Meanwhile, a break above the 200-day …

Both small and rich Bitcoin (BTC) traders accumulated the benchmark cryptocurrency en masse during the period when its prices rose from below $30,000 to over $40,000, signaling their confidence in the asset’s long-term bullish setup. The basis of the upside outlook came from Ecoinometrics, a crypto-focused newsletter service. It highlighted in its latest edition a flurry of on-chain data that tracked the flow of Bitcoin into wallets that belonged to the richest crypto traders, known as “whales,” and to entities that held the cryptocurrency in smaller quantities — the so-called “small fish.” “After a couple of weeks of data showing …

Bitcoin (BTC) rose above $40,000 on July 29, a day after the Federal Reserve hinted that it was getting nearer to unwinding its asset purchasing program that has boosted the economic recovery of the United States. The benchmark cryptocurrency previously approached $41,000 ahead of the critical Fed update. Nonetheless, it started losing upside momentum after the Federal Open Market Committee (FOMC) released its policy statement, followed by a press conference helmed by the Fed's chairman, Jerome Powell. As economists expected, Fed officials left their monetary policy unchanged at the end of their two-day policy meeting. They noted that the U.S. …

Republican Senator and Bitcoin proponent Cynthia Lummis said that massive government spending is accelerating crypto adoption. Lummis made the comments while sharing an interview she did with “Varney & Co” on the Fox Business cable network on July 29, in which she called for a crypto regulatory sandbox and support to attract Bitcoin miners to set up in US states. On Twitter she stated that “big gov’t spenders are (accidentally) doing far more to accelerate the adoption of digital assets than I am,” and asserted that the debasement of the U.S. dollar is driving citizens to store value in digital …

Ether (ETH) and Bitcoin (BTC) pulled back on Wednesday as investors awaited fresh guidance from the United States Federal Reserve. ETH’s price slipped by 0.57% to $2,857, while the BTC/USD prices were up 0.68%, changing hands at $39,739 at around 10:30 am EST. Nevertheless, both pairs reached their current levels following a downside correction from their respective intraday highs of $2,391 and $40,925, respectively. Traders raised their exposure in the cryptocurrency market after Tesla’s Elon Musk, Ark Invest’s Cathie Wood and Twitter’s Jack Dorsey spoke in favor of Bitcoin during “The ₿ Word” conference last week. More tailwinds came amid …

Not all hedge fund managers are sold on crypto as Man Group CEO Luke Ellis has compared cryptocurrencies to tulip bulbs. Speaking to the Financial Times, Ellis remarked that the utility of crypto comes from its volatility, thus presenting the asset class as a viable trading opportunity. According to the CEO of the world’s largest publicly-traded hedge fund: “If you look at cryptocurrencies as a whole, it is a pure trading instrument. There is no inherent worth in it whatsoever. It is a tulip bulb.” Despite being an outmoded comparison, crypto and Bitcoin (BTC), in particular, are often compared to …

A four-day winning streak brought the Bitcoin (BTC) prices closer to testing its 50-day exponential moving average (~$35,115) as resistance. The wave, which was instrumental in strengthening Bitcoin's bullish bias across 2020 as support, flipped to become a resistance during the May 2021 sell-off. In doing so, it capped the cryptocurrency from extending its upside rebound moves many times. For instance, Bitcoin's drop from $56,900 to $30,000 in mid-May prompted bulls to buy the dip. As a result, the cryptocurrency shot back above $40,000 but found its bullish momentum exhausting right near the 50-day EMA. The scenario repeated multiple times …