Bitcoin faces down stocks and COVID-19 as a new week begins

Welcome to the Cointelegraph Markets weekly newsletter where we take a look at the influential factors behind Bitcoin price action for the days...

View this email in your browser Markets Outlook Bitcoin faces down stocks and COVID-19 as a new week begins "But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions?" — Alan Greenspan Welcome to the Cointelegraph Markets weekly newsletter that covers the main factors influencing Bitcoin's price in the week ahead. An asset as varied as Bitcoin can behave completely differently from week to week — and even hour to hour. More than ever, macro markets are set to play an important role in determining price trajectory in the coming days. Against a backdrop of correlation, BTC/USD will likely continue to react to equity changes in particular. Price action remains limited — a corridor between $9,000 and $9,500 has yet to be broken in any definitive way after multiple weeks. What could change the status quo? Continue reading to discover five potential factors that could contribute to a Bitcoin price shake-up. Stock market interventions worry analysts Stocks have been climbing, but the true composition of the market remains a source of concern. Fresh meddling by the U.S. Federal Reserve will underscore the artificial nature of equities in their current state, new comments suggest. Bitcoin, highly correlated to the S&P 500, could easily react to a Fed announcement impacting stocks. Changes in stock performance, as seen last week, also have significant repercussions for BTC's price behavior. The Fed may have to act due to multiple signs that the coronavirus "recovery," which has been dubious from the outset, is now slowing, as consumers get cold feet. Fear & Greed tends to neutral Two Fear & Greed indices, one for traditional markets and one for cryptocurrency, are on a collision course from opposite ends. Macro has suffered from overly "greedy" sentiment in recent weeks but is now getting more cautious, the index says. Conversely, cryptocurrency sentiment has been slowly becoming less fearful, with both indicators approaching territory known as "neutral." Investors vote with their wallets In 2020, data show that far from a stocks boom, investors have been funneling money into cash and gold. The behavior mimics both 2008 and 2009, the period of the global financial crisis, and comes as gold circles all-time highs, but cash supplies have been suffering from increasing inflation. Bitcoin has delivered market-leading gains this year, and year-to-date performance has shown that BTC bought on Jan. 1 would have netted 29% returns despite the emergence of the coronavirus. Bitcoin difficulty and hash rate impress Two essential network fundamentals continue to show buoyant sentiment among miners this week. Difficulty will adjust upward by almost 10%, while the hash rate remains near all-time average highs. Trend analysis in fundamentals has given rise to a now popular theory — price follows fundamentals and hash rate in particular. Derivatives stay bearish Bitcoin futures flashed a warning at the close of trading last week, something which Cointelegraph Markets analyst filbfilb said even looked similar to the build-up to the coronavirus crash in March. Low volatility over the weekend, meanwhile, removed the possibility for short-term price moves to fill the resulting gap in futures markets. 1.5 million people follow us on social media Download our official app:

This email was sent to olaiyavf01.elloveth@blogger.com why did I get this?    unsubscribe from this list    update subscription preferences Cointelegraph · PO box 309 · Ugland House, Grand Cayman KY1-1104 · Cayman Islands