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Key Support Level for USD/CAD Amid Strong Canadian GDP GrowthThe Canadian economy has rebounded sharply at the start of the new year. In fact, industry-level GDP surpassed market expectations, rising by 0.5% in January. Moreover, there was a broad-based growth in all sectors, leading to new projections of a 0.3% increase in GDP in February. Despite the positive news, the CAD has remained largely stable. This could be due to quarter-end rebalancing flows. However, the USD/CAD pair has shown a quick reversal from 1.38, suggesting that the data may have already been factored in by market participants. TD Securities predicts that the USD/CAD pair will find support at 1.35. However, if the US data disappoints in the coming weeks, this level could be seriously tested. It should be noted that the pair is still trading at a moderate premium. In conclusion, the Canadian economy has had a strong start to the year, and the positive trend is expected to continue. However, the USD/CAD pair remains vulnerable to changes in the US economic data.
by FOREXN1
1
GOLD:Price Rises on Weak USDollar and Easing Banking Crisis FearThe price of gold is fluctuating within a bullish chart pattern that has been in place for the past two weeks. Recently, there has been a lack of momentum, but the decrease in concerns regarding a banking crisis, along with a weaker US Dollar, has led to an increase in demand for gold. This, combined with hopes of positive core inflation data from the Eurozone and the United States, and tensions between China and the US, has propelled the XAU/USD bulls. During Friday's Asian session, the XAU/USD reached $1,980, reversing the previous week's losses ahead of key inflation data from both the United States and Eurozone. It is worth noting that despite concerns regarding further rate hikes by the Federal Reserve, the gold price is being driven by a risk-on mood and a lack of conviction in the Fed's stance. The weak performance of the US Dollar is also contributing to the rise in the gold price, even though the hawkish Fed concerns and mostly positive US data are challenging buyers of XAU/USD. The increase in the XAU/USD could also be linked to quarter-end positioning of the US Dollar Index (DXY), which has been on a three-week downtrend, with bears pushing it to the 102.15 level. Despite Federal Reserve Chairman Jerome Powell and three other Fed Officials backing further rate hikes, mixed US data has cast doubt on the hawkish rhetoric of Fed policymakers, thereby allowing the gold price to remain strong. This has been due to sluggish yields and hopes of a secure banking system. Mixed US data and a risk-on mood have failed to strengthen the US 10-year Treasury bond yields, which remain under pressure at around 3.55%, while the two-year counterpart is on track for its first weekly gain in four, currently grinding higher around 4.12%. Hence, sluggish yields, mixed data, and a mostly positive sentiment have combined to allow the gold price to remain strong.
FXOPEN:XAUUSD
by FOREXN1
19
EUR/USD Reverses Gains as Greenback Strengthens Ahead Key DataEUR/USD Reverses Recent Gains as Greenback Gains Strength Ahead of Key Data Releases After four consecutive daily advances, the EUR/USD has given up some ground at the end of the week. The German docket's disappointing results, combined with renewed buying interest in the greenback, have contributed to the reversal of the recent multi-session upside. Despite this setback, the ECB's expected rate hikes in May are likely to lend support to the pair's upside momentum, especially as there is growing speculation that the Federal Reserve might decide to hold rates at its next gathering. The weekly uptrend in EUR/USD has encountered a formidable barrier around the monthly highs near 1.0930 on Friday. In Germany's domestic calendar, Retail Sales contracted 7.1% in the year to February, while the March jobs report showed the Unemployment Change increased by 16K persons, and the Unemployment Rate ticked higher to 5.6%. Later in the session, flash inflation figures in the euro area will take center stage ahead of ECB Chairwoman C. Lagarde's speech. Meanwhile, in the US, all eyes are on the PCE inflation measurement, Personal Income/Spending, and the final Michigan Consumer Sentiment.
Long
by FOREXN1
14
GBP/USD Aiming to Retest Two-Month HighThe GBP/USD currency pair is aiming to re-test its two-month high of 1.2448 during the Asian session, as market sentiment remains optimistic. Despite expectations of the Federal Reserve (Fed) maintaining a steady monetary policy, the Cable is attracting bullish bets. The US Dollar Index (DXY) is currently defending the 102.20 support level, as the receding fears of the United States banking crisis have opened the possibility of a continuation of the policy-tightening spell by the Fed. Investors are anticipating the release of the core US Personal Consumption Expenditure (PCE) Price Index (Feb) data, which is expected to remain steady at 4.7% annually. Meanwhile, the prices of goods and services have accelerated by 0.4%, lower than the former expansion of 0.6%, causing the USD Index to exhibit unpredictable movements above the 102.20 support level. The BoE's monetary outlook has varying opinions, which will likely cause the Pound Sterling to be volatile. As per the CME Fedwatch tool, the likelihood of the Fed maintaining an unchanged monetary policy in May has fallen below 50%.
Long
by FOREXN1
7
GBP/USD Targets 1.2400 Region Despite Softening ToneThe GBP/USD pair is expected to continue its upward trend with the next noteworthy target at the 1.2400 region. In our analysis yesterday, we noted that despite the recent gains, there was no significant increase in the upward momentum. However, we also mentioned that there was still some room for GBP to rise to 1.2370 before the possibility of a pullback arose. GBP did reach a high of 1.2362 during London trade before experiencing a slight decline to finish the day at 1.2314 (-0.22%). While the underlying tone has softened somewhat, any expected decrease is likely to be part of a 1.2270/1.2340 range, and a clear break below 1.2270 is deemed improbable.
Long
by FOREXN1
7
EUR/USD: Pushing to 1.0900Today, market analysts will be closely observing the preliminary inflation readings for March in Germany and Spain. The first readings of the Consumer Price Index (CPI) are in the spotlight. The German figures are expected to garner greater interest, with a projected deceleration from 8.7% to 7.3% in the headline rate. The Spanish numbers have recently triggered some market fluctuations, and experts predict a flat core rate of 7.6%, but a significant deceleration in headline inflation from 6.0% to 3.7%. As the European Central Bank remains explicitly data-dependent, despite an implicit hawkish bias, this week's inflation figures are likely to significantly influence the market's rate expectations.
Long
by FOREXN1
3
EUR/USD:Pullback Support Area For a New LONG Setup The ECB's leadership in the "tightening race" allows us to expect a continued EUR/USD rally within the upward channel in the near future. The minimum target is the March high of 1.091, followed by a retest to the area of 1.10, where there was strong resistance to the sharp improvement in the macroeconomic backdrop in the United States at the beginning of February: Risks to the Core PCE for March, the Fed's key measure of inflation, have shifted downward; risky assets have responded with additional gains, while the dollar has reached new lows. A weak Core PCE will make it much easier for EUR/USD buyers to increase their position. The Conference Board Consumer Confidence Index for March was 104.2 points higher than expected (forecast 101 points). The monthly change in US real estate prices was 0.2%, with the Case-Shiller price index increasing 2.5% year on year. Overall, the data point to a modest increase in optimism in the US stock market in the near term.
Long
by FOREXN1
23
GOLD Prices Decline on First Citizens Bank's Acquisition of SVB The pace of the pullback in gold prices has intensified following the announcement that First Citizens Bank has acquired Silicon Valley Bank (SVB). The rise in US Treasury yields and reduced demand from India are adding further downward pressure on the price of gold. Despite the current uptrend, a double TOP formation is posing a threat with the neckline at a key level of $1,934. As of writing, XAU/USD is trading in the $1,950s, down by over 1.0% for the day. The ease in bank stress has lessened gold's safe-haven appeal, while rising US Treasury bond yields and a robust US dollar, along with reports of declining demand from India, have further exacerbated the decline in prices. The announcement of the acquisition of defunct lender Silicon Valley Bank by First Citizens Bancshares Inc, the holding company of North-Carolina-based First Citizens Bank, has brought temporary relief to the markets on March 27, reducing the demand for gold as a safe-haven asset. According to a press release from the FDIC, First Citizens has acquired all of SVB's $119B deposits and loans and has purchased $72B of its assets at a $16.5B discount. Although the deal has limited the damage caused by SVB's failure, it has not eliminated it entirely, with the bank's collapse estimated to have cost the FDIC $20B.
OANDA:XAUUSDLong
by FOREXN1
10
EUR/USD Pair Expected to Rise Towards 1.10, Says ING EconomistsAccording to the latest updates, the Euro (EUR) has traded above the 1.08 mark against the US Dollar (USD). ING, a prominent economic institution, predicts that the EUR/USD pair will steadily rise and reach the 1.10 level. Isabel Schnabel, a member of the European Central Bank (ECB) governing council, reinforced her hawkish stance during a recent statement. Schnabel emphasized the inclusion of a reference in the March ECB statement, highlighting the possibility of hiking. This assertion likely contributed to a further increase in the market rate expectations in the eurozone. The positive outlook for the EUR/USD pair is expected to continue due to the ECB's hawkish narrative and a stable European banking situation. ING predicts that this bullish momentum will likely help the pair to reach the 1.10 mark in the near future, although some bumps along the way are highly probable.
Long
by FOREXN1
7
NZD/USD Rebounds on Positive Banking News and Fed UpdatesThe NZD/USD pair has shown signs of recovery after hitting a low of 0.6181, which was the result of the ongoing banking crisis causing nervousness in the market. The New Zealand dollar has struggled recently due to the impact of bank stress on risk appetites. However, positive news surrounding the Silicon Valley Bank (SVB) deal and the Federal Deposit Insurance Corporation's (FDIC) confirmation that First Citizens bank would take over all deposits and loans of Silicon Valley Bridge Bank from the FDIC has provided some much-needed support for the risk-sensitive currency. According to Bloomberg, US regulators are considering expanding an emergency lending facility for banks, which would give First Republic Bank (FRC) more time to strengthen its balance sheet. Meanwhile, Federal Reserve (Fed) voter Kashkari has taken a dovish stance and stressed the uncertainty of the banking crisis's impact on the economy, with the Fed closely monitoring the situation. This contrasts with the hawkish views of non-voting colleagues Barkin and Bullard, who are focused on addressing inflation over financial stability. In recent testimony, Fed Vice-Chair of Supervision Barr reassured investors that the banking system remains robust, with the Fed committed to ensuring deposit safety. He also discussed planned regulations to enhance the financial system's resiliency, including long-term debt requirements for large banks, improved stress testing, and exploration of liquidity rules and other reforms. As we look ahead, the market's focus is now on the upcoming US Personal Consumption Expenditure (PCE) data release, which will likely shape US Dollar dynamics. This data is set to be released later this week and will undoubtedly have an impact on the currency markets.
Long
by FOREXN1
5
EUR/USD: Economists Predict Euro to Rise Against by End of YearAccording to economists at Commerzbank, the Euro (EUR) is expected to gain some value against the US Dollar (USD) towards the end of the year as the US moves closer to rate cuts. The Federal Reserve is expected to commence cutting rates again in early 2024, which is likely to reduce the demand for the USD's 'safe haven' property as market concerns subside. As a result, the EUR/USD exchange rate is predicted to rise. The European Central Bank (ECB) and the Federal Reserve are both expected to end their rate hike cycles in the summer. However, while the ECB rates are expected to remain stable, the Fed is expected to begin cutting rates again in early 2024. This convergence of monetary policies is seen as a significant advantage for the Euro. The economists at Commerzbank have set a target of 1.12 for the EUR/USD exchange rate. As market concerns ease, the demand for the USD's safe haven property is expected to decrease, which would lead to a rise in the EUR/USD exchange rate.
Long
by FOREXN1
23
GOLD Prices Steady Amid Bank Takeover and Recession ConcernsThe price of gold is experiencing a steady pullback in the wake of First Citizens Bank's takeover of SVB. However, Minneapolis Fed President Neel Kashkari's comments about a possible recession caused by a banking crisis have tempered the relief felt by investors. While the price of gold is correcting, it is still too minor to be considered a reversal. As of the start of the week, XAU/USD is trading in the lower $1,970s, down from its high of just over $2,000 on Friday. Although the easing of bank stress may have lessened gold's safe-haven appeal, fears of wider contagion are still keeping the precious metal's price above a certain level. The market was temporarily soothed on March 27 when First Citizens Bancshares Inc, the holding company of North-Carolina based First Citizens Bank, purchased defunct lender Silicon Valley Bank (SVB). The takeover has led to a lessening of demand for safe-haven gold. According to a press release from the FDIC, First Citizens has taken over all of SVB's $119B deposits and loans, and has purchased $72B of its assets at a $16.5B discount. The deal limits the damage caused by SVB's failure, but it does not eliminate it. The bank's collapse is still believed to have cost the FDIC $20B. Despite the positive news about the takeover, policymakers remain concerned about the potential for more banking contagion to trigger a recession. Minneapolis Fed President Neel Kashkari said in an interview on the CBS show Face the Nation that "Recent stress in the banking sector and the possibility of a follow-on credit crunch brings the US closer to recession. It definitely brings us closer." He added that they were monitoring the situation very closely. Despite the concerns, the price of gold remains in an uptrend on a short to medium-term basis, making higher highs and lows on the daily chart. This supports bullish bets, as the old adage goes, "The trend is your friend until the bend at the end."
OANDA:XAUUSDLong
by FOREXN1
9
GBP/USD rises on US recession fears and UK energy relief hopesGBP/USD has continued its two-week upward trend and hit an intraday high near 1.2250 at the beginning of the week. The rise is attributed to fears of a US recession and positive news from the UK, including hopes for more economic measures to support energy companies from PM Sunak. However, the Cable pair buyers are being tested by cautious sentiment ahead of the key data and events this week. The Bank of England's (BoE) recent 0.50% rate hike, combined with mostly positive economics and downbeat US Treasury bond yields, have also contributed to the rise in GBP/USD. However, Friday's risk-negative headlines challenged the GBP/USD buyers before the latest surge, which was supported by weekend news. Over the weekend, Minneapolis Fed President Neel Kashkari expressed concerns about stress in the banking sector and the possibility of a follow-on credit crunch, which he believes could bring the US closer to recession. This news, along with the Financial Times' suggestion of more relief for UK energy companies, has favored GBP/USD prices. Looking ahead, BoE Governor Bailey's speech may interest intraday traders of the GBP/USD pair. However, the major attention will be given to the Fed's preferred inflation gauge, namely the Core Personal Consumption Expenditure (PCE) Price Index. In the meantime, geopolitical concerns such as Russia's nuclear usage in its war with Ukraine and the ongoing Brexit negotiations continue to influence the GBP/USD bulls.
Long
by FOREXN1
9
EUR/USD: Pullback 50% 61.8% FIBO For a New LONG SetupAccording to ING economists, the EUR/USD pair has retreated after surpassing the 1.0900 mark. Nevertheless, they anticipate that the pair will reach the level of 1.1000 in the near future. Today, market focus will be on the PMI readings in the Eurozone. ING predicts that the survey will stabilize around the figures from February. Unless there are any major surprises, the PMI releases are unlikely to have a significant impact on the market as the macro fundamentals are currently playing a secondary role to the financial market's stress. ING suggests that the Dollar bias will remain bearish, and European currencies will be supported by hawkish central banks and a less volatile banking environment, which could lead to the testing of the 1.1000 level in the near future.
Long
by FOREXN1
20
USD/JPY REMAINS HEAVILY BEARISH,LOWEST LEVEL SINCE FEBRUARY 10For the third consecutive day, USD/JPY is experiencing heavy selling pressure, pushing the pair lower. The anticipation of a hawkish shift by the Bank of Japan (BoJ) is increasing demand for the Japanese Yen, thus contributing to the downward trend. However, some follow-through USD buying may offer some support to the pair, helping to limit further losses. During the first half of the European session on Friday, the USD/JPY pair extended its rejection slide from the 133.00 level earlier this week, and the spot prices dropped to their lowest point since February 10th. The bears are now looking to push the pair further below the psychological level of 130.00. Japan's consumer prices rose at their fastest pace since 1982 in February, and the Japanese Yen strengthened across the board in response to the domestic data. Specifically, Japan's core-core CPI, which excludes energy and food prices but includes alcoholic beverages, accelerated to 3.5% YoY, marking the fastest increase in 41 years. This has increased the likelihood of the Bank of Japan adjusting its bond yield control policy in the near future, which would benefit the domestic currency and continue to push the USD/JPY pair lower. Bearish traders have also taken cues from a further decline in US Treasury bond yields. This decrease in yields is led by the Federal Reserve signaling that it may soon pause its rate-hiking cycle due to the recent banking sector turmoil. As a result, the yield on the benchmark 10-year US government bond and the rate-sensitive two-year Treasury note are hovering near a six-month low reached earlier this week. This further narrows the US-Japan rate differential, which is another factor driving flows towards the JPY and contributing to the heavily offered tone surrounding the USD/JPY pair.
Short
by FOREXN1
4
SILVER: BULLS RETAIN CONTROL NEAR MULTI-WEEK HIGH, ABOVE $23.00Silver is currently consolidating after a strong move upwards on the previous day, reaching its highest level since February. The technical setup favors bullish traders and supports the potential for additional gains. Even if there is a pullback below the 61.8% Fibo, it is likely to attract fresh buyers and remain limited. The white metal is hovering above the $23.00 level, consolidating recent strong gains that began from the year-to-date low earlier this month, and is poised to continue the upward trajectory witnessed over the past two weeks or so. This sustained upward move is supported by this week's break and acceptance above the 61.8% Fibonacci retracement level of the recent pullback from a multi-month peak, adding credibility to the positive outlook. Technical indicators on the daily chart remain in the positive territory, and the absence of overbought signals indicates that the potential for an extension of the upward trend remains intact, which favors bullish traders. Therefore, a subsequent move beyond the $24.00 level could be in the cards, with a retest of the multi-month peak around the $24.65 region seen in February being a distinct possibility. Additional gains could occur if there is follow-through buying, which would enable XAG/USD to reclaim the psychologically significant $25.00 mark for the first time since April 2022. The next relevant hurdle is situated in the $25.30-$25.35 zone. However, dips below the $23.00 level may find some support near the 61.8% Fibo resistance breakpoint, located around the $21.80 region. Any subsequent decline is likely to attract new buyers near the $22.50 horizontal zone, which should limit the downside for XAG/USD near the $22.20 area or the 50% Fibo level. This is followed by the $22.00 mark, which if broken decisively, could set the stage for more significant losses.
OANDA:XAGUSDLong
by FOREXN1
6
GBP/USD: KEY 1.2420 AND 1.2500 LEVELS CAN BE TESTED QUITE SOONAccording to analysts at ING, GBP/USD is currently fluctuating below the 1.2300 level after the Bank of England's recent decision to raise the policy rate by 25 basis points. The economists predict that the pair will soon test the key resistance levels of 1.2420 and 1.2500. Despite the rate hike, the Bank of England did not provide much guidance in their statement, and it seems that the Monetary Policy Committee (MPC) has left all options open. It was anticipated that the BoE would not offer any substantial guidance, leading to a brief impact on the Pound. As predicted, this has been the case. It is likely that the BoE will take a pause in May, despite the recent rise in inflation. The analysts believe that with around 30 basis points of tightening in the price, there is potential for a repricing lower to favor a slightly higher EUR/GBP. The BoE's decision does not seem to have much of an impact on Cable, and with the view for Dollar downside risks, the key resistance levels of 1.2420 and 1.2500 are expected to be tested in the near future.
Long
by FOREXN1
3
GOLD FUTURES: DOOR OPEN TO EXTRA GAINAccording to the latest updates from CME Group on gold futures markets, there has been a notable surge in open interest, which rose by approximately 11.2K contracts on Thursday, reversing the two consecutive daily declines. Furthermore, volume has also experienced a similar increase, going up by around 33.4K contracts after a streak of three consecutive daily drops. To sustain further upward momentum, it is imperative that gold prices close above the critical $2000 mark per ounce troy. Fortunately, on Thursday, gold prices continued their rebound and once again surpassed this key level, albeit closing below it. This positive movement can be attributed to the surge in both open interest and volume, indicating a positive outlook for the yellow metal in the near future.
COMEX:GC1!Long
by FOREXN1
1
USD/CAD Remains Steady Amid Mixed Fundamental BackdropThe USD/CAD currency pair is currently trading in a tight range, as it is influenced by a combination of factors. The Loonie, as it is also known, is being supported by a recent uptick in oil prices, which has increased due to fears of potential supply disruptions in the Middle East. This has acted as a headwind for the USD/CAD pair, which is also being weighed down by subdued US dollar demand. Additionally, traders are eagerly awaiting important macroeconomic data from both the US and Canada, which could provide a fresh impetus for the pair. Despite a goodish rebound from the 1.3630 area, or over a two-week low, the USD/CAD pair remains below the 1.3700 mark due to a combination of factors that are keeping any meaningful upside in check. It is important to note that the recent collapse of two mid-size US banks, Silicon Valley Bank and Signature Bank, has contributed to the Federal Reserve's cautious outlook on the economy. This has resulted in the Fed lowering its median forecast for real GDP growth projections for 2023 and 2024, which is keeping the US Treasury bond yields and the USD subdued. While there is generally a positive tone around the equity markets, growing concerns about slowing economic growth denting fuel demand are capping the upside for oil prices. This, combined with expectations that the Bank of Canada (BoC) will refrain from raising interest rates any further, is providing some support to the USD/CAD pair. From a technical perspective, the lack of a clear near-term trajectory is reflected in the two-way price movements that have been witnessed since the beginning of the week. Given the mixed fundamental backdrop, traders are advised to exercise caution before placing aggressive directional bets around the USD/CAD pair. Investors are also showing some reluctance ahead of important macro data releases from both the US and Canada, which are due later during the early North American session. Friday's economic docket features the release of Durable Goods Orders and the flash PMI prints in the US, which will be closely watched by traders. Meanwhile, Canadian monthly Retail Sales figures will provide further cues. Finally, oil price dynamics will play a crucial role in determining short-term opportunities on the last day of the week. In conclusion, the USD/CAD currency pair remains steady above 1.3700 but lacks bullish conviction amid an uptick in oil prices. Traders are advised to stay cautious and follow the macroeconomic data releases and oil price dynamics to identify any short-term opportunities.
by FOREXN1
3
GBP/JPY Falls on Weak Treasury Yields - SHORTGBP/JPY is experiencing a decline from a one-week high and a fading corrective bounce off 160.80. The drop to 161.00 is in response to the decline of Treasury bond yields and the general weakness of the British Pound ahead of the Bank of England's monetary policy announcement on "Super Thursday." Following the US Federal Reserve's and US Treasury's announcements, yields tumbled. The pessimistic outlook for big manufacturing firms in Japan according to the Reuters Survey also adds to the pressure on the GBP/JPY. Despite the strong UK inflation data and the Brexit bill's passage through the House of Commons, the GBP/JPY buyers have not seen much success due to ongoing concerns about Brexit and banking fears. The recent announcements by Fed Chair Jerome Powell and US Treasury Secretary Janet Yellen triggered a brief corrective bounce in the bond market, but it was short-lived. Fed officials have indicated that they do not anticipate rate cuts for this year, and Yellen ruled out the consideration of "blanket insurance" for bank deposits. The US 10-year and two-year Treasury bond yields are currently pressured at 3.45% and 3.96%, respectively, while the S&P 500 Futures show mild gains despite Wall Street's downbeat performance. Although the GBP/JPY pair's recent losses ignore the negative results of the monthly Reuters survey, they are still significant. The survey shows that big Japanese manufacturers remain pessimistic about business conditions for the third consecutive month in March. Please support me with LIKE and FOLLOW
Short
by FOREXN1
3
EUR/USD Continues to Climb, Testing 7-Week HighsOn Thursday, EUR/USD remained strongly bullish and showed no signs of slowing down. The pair managed to hit fresh 7-week highs, testing the 1.0930 level. This consistent upward trend can be attributed to the persistent selling pressure on the US dollar, which resulted in the USD Index (DXY) hitting multi-week lows, falling below the 102.00 level earlier in the day. The dovish hike by the Fed during its Wednesday meeting, coupled with Chair Powell's downbeat message at his press conference following the rate hike, also contributed to the pair's upward momentum. The European Commission will release the flash EMU Consumer Confidence for the current month, which will likely have an impact on the euro's performance. In the US, weekly Claims, Chicago Fed National Activity Index, and New Home Sales are expected to be released. The EUR/USD pair's optimistic outlook remains intact, and it looks to consolidate its recent strong rebound past the 1.0900 resistance level. The pair's immediate target is the 2023 high near 1.1030. The pair's future price action will be largely dependent on the US dollar's movement and the European Central Bank's potential next moves, considering the current context dominated by elevated inflation, although amidst dwindling recession risks for the time being.
Long
by FOREXN1
24
BITCOIN:Crypto Market Dips After Fed's Interest Rate HikeBitcoin and other cryptocurrencies experienced a decline on Thursday after a selloff on Wednesday, following the Federal Reserve's latest interest-rate hike. Despite the setback, cryptocurrency traders predict that the digital asset rally will continue, albeit with a temporary pause. Over the past 24 hours, the price of Bitcoin has fallen by 1.5%, reaching $27,700, dropping from the high point of $28,500 on Wednesday. However, the digital asset rebounded from the trough below $27,000 immediately after the Fed raised interest rates by a quarter of a percentage point. Wednesday's peak marked the highest level for Bitcoin since the crypto bear market accelerated last June. Prices for the largest digital asset are still up by more than two-thirds in 2023 in a rally that has spurred calls for a new bull market. Sam Yilmaz, co-founder of venture fund Bloccelerate, said, "Bitcoin's rally ahead of the Fed set us up for disappointment, and sure enough, we saw Bitcoin retreat from just shy of $29,000 after Powell's press conference. A cooling off period is overdue and allows Bitcoin and crypto to settle. I still believe Bitcoin could go to $35,000 in a matter of weeks because, put simply, price action breeds price action in crypto." Cryptocurrencies fell in line with the stock market after the Fed hiked rates. This return to Bitcoin's correlation with equities comes after weeks of outperformance. While the rate hike of 25 basis points was expected, digital assets dropped in step with the Dow Jones Industrial Average and S&P 500 as investors worried about how tightening financial conditions would continue to pressure the banking system.
COINBASE:BTCUSDLong
by FOREXN1
10