Read the success stories of crypto entrepreneurs.

Discussions are fun when we are part of a community.
Login Free Registration

Get 10 AltcoinN Points just by registering on this forums.
Get A Quote


SPX Strikes Again & Takes Down Bitcoin with it

SourceBlog
#1
The price of Bitcoin fell to $9,050 after rising to nearly $9,500 this week. Currently, the leading digital asset is trading around $9,175, down 2.54%, with about $1.16 billion in ‘real’ trading volume.

According to IntoTheBlock’s In/Out of the Money Around Price (IOMAP) indicator, more than 2.2 million addresses previously purchased 1.43 million BTC in the $9,172 and $9,442 range, as such it is “a critical resistance level as several of these addresses will attempt to break-even on their positions.”

The losses came after the S&P 500 fell on Thursday as investors fear a smooth reopening from the coronavirus shutdowns may not be happening.

One month correlation of SPX and bitcoin is currently at 68.5%, slightly down from the all-time high of 78.8% on July 8th, 2020.

Tech Stocks Still Leading the Rally

Data showed that initial unemployment claims in the US remain elevated while the number of confirmed new Covid-19 cases in the country hit a new single-day high the day before.

Eric Rosengren, the president of the Federal Reserve Bank of Boston, fears that the community spread in many areas of the US will continue to be the problem for the economy.

In light of this, the broad US stock index pulled back, S&P 500 dropped 0.56%, and the Dow Jones Average 1.39%. The tech sector, however, is still roaring ahead with Amazon in the lead.

“Much stems from tech’s new role as a utility — something consumers and businesses simply can’t live without,” wrote Lei Qiu, a fund manager overseeing tech stocks at AllianceBernstein. “These necessities have become even greater as the pandemic increased the need for remote shopping, learning, and working.”

But even gold moved in the same direction as of stocks and pulled back from the new nine-year peak but is still above $1,800.



Meanwhile, the US dollar, which struggled with China’s yuan climbing to a four-month peak as investors poured into Chinese stocks which had been rallying for eight straight days, rebounded.

More Free Money Coming!

On Thursday, Treasury Secretary Steven Mnuchin supported the second round of stimulus checks, which could come as soon as by the end of this month.

“We do support another round of economic impact payments,” said Mnuchin in an interview with CNBC.

This second round of checks would come after $1,200 were given to most of the Americans as part of the $2 trillion rescue package in March.

US House of Representative Speaker Nancy Pelosi also said the same day that the coronavirus relief legislation needs another $1 trillion to aid state and local government and $1 trillion for unemployment payments and direct payments.

The White House also back an extension of the Paycheck Protect Program (PPP) loans for small business but wants them to be “much, much more targeted” than the previous one, Mnuchin said.

MNUCHIN SAYS VAST MAJORITY OF PPP LOANS ABOVE $2 MLN WILL BE FORGIVEN
— *WALTER BLOOMBERG (@DEITAONE) JULY 9, 2020
In the same line, Federal Reserve Bank of Atlanta President Raphael Bostic feels the US economy warrants more action by the central bank.

Meanwhile, the Fed has wound down its unprecedented 10-month intervention in short-term borrowing markets. Some say it is “important” because it signals a return to normality in the repo market.

With so much support for the new stimulus, the chances are it is coming, and with that, the Fed’s army of Robinhood traders will pump up the stock market. This may even bring some action in bitcoin as well, given its correlation with the equities market that remains high.
Reply
 Travel Medical Insurance