strange signs of the market of cryptocurrencies, with Bitcoin who even loses me $36,000, to then organize a timid attempt to recovery around $35,000. However, it is not the movements of short, but the macro scenario in which we will evolve.
A situation quite particular – which does not only concern the world of cryptocurrencies, but in general all major financial markets, including the stock market. A systemic crisis or adjustment under the next movements of the central banks?
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Stock exchanges and crypto-currencies: same trajectory with the same puppeteer
which operates only on cryptocurrencies you will have already noticed an obvious fact: the collapse, although in very different percentages, involves all Financial markets. We’re not just talking about Bitcoin And cryptocurrencies, but also of Shares, especially in the USE and in Asia. The graph that we report here is quite eloquent.
We have indeed a very significant loss for Bitcoin, which, however, in smaller proportions, is also signaled by Nikki 225, from SPX500 – the index of the 500 best American stocks, and to a lesser extent also by European titles, which collects the best european stocks.
A situation therefore which has a similar tendency, if not identical except for the curve slope. One thing we see a lot when we grow up a lot when we grow up. On the other hand, one should not be surprised to anybody these relatively parallel movements, since we’ve been talking about them for some time Cryptocurrency.it.
A single reason: the arrival of the squeeze
Someone in prestigious Italian newspapers talked about capricious steps. As interesting as anthropomorphism is, markets don’t have souls, but they do respond to incentives. We are witnessing, from the COVID crisis, a huge increase in the available liquidity that has been obtained Course of all the major sectors at risk. Liquidity is avoidance, which has found refuge mainly in Shares And cryptocurrencies.
Liquidity which – it is the firm intention of Federal Reserve – it will have to be drained gradually to fight against inflation, as announced on several occasions by Jerome Powell from FEED, in a communication however, from December, rather schizophrenic.
Because if it is true that sooner or later it will have to come to this, it is also true that Powell in a certain sense, his hands are bound precisely by the tendency to markets. Because these will continue to react with liquidate important, compromising the savings as well as the possibility of business growth. A very narrow track, inside which fed and other central banks found themselves on the move even after the crisis 2009. With more than the ECB don’t want to know yet withdraw money of the market, and that there could therefore be other shocks, albeit to a lesser extent, in the market.
The main cryptocurrencies – trend of the last week
It was, without a shadow of a doubt, one of the worst weeks for the crypto world in recent years, with all major cryptocurrencies in the market losing significant amounts of capitalization. They got lost 400 billion in less than a week, which is absolutely incredible, considering that they had already been significant sales before the end of the year.
A slow decline in value continues, with rapid descents in between. The price of $35,000 held while in Italy it was the early hours of the morning, but not everyone is convinced that it could be the low final. During the weekend, there could be surprises but also on the upside. We are almost there half from the highest historical level, more or less at the same level that we saw during the last may.
Even worse situation for Ethereum, which lost 26% in one week, more than Bitcoin so, for a liquidate which was much harder for altcoin. I lost $2,500, the second largest cryptocurrency in the world for market capitalization held above the $2,400.
Again the correlation was at its maximum, with none of the major cryptocurrencies having managed to defend themselves on the occasion of a huge sale which involved all Marlet. Therefore, there were no safe havens.
Next Tuesday and Wednesday at the center of the discussions
the FOMC, or the Federal Free Market Committee, will meet next Tuesday and Wednesday, and should begin giving more certain news of its repayment plan towards normality. A bullish rate decision has already been widely discounted by markets, which lowers the level of nervousness and of fear of the markets.
Hard that FEED goes beyond the expectations of the markets, which are already quite negative. Until Tuesday and Wednesday, however, it is more than legitimate to expect great volatility in the markets, all of which are now strong bearish sentiment and with the fear it does, regardless of the FOMC, ninety.
Time to Ditch Cryptocurrencies? This is absolutely not certain: because a period of volatility of this type also allows reverse feeling with very few signals. All we can do is expect uncertainty and act accordingly. Maybe by preparing with suitable tools. The crypto-Capital.com platform – go here to get a free account with UNLIMITED VIRTUAL CAPITAL, offers everything we need to surf even on any volatility. Thanks also to the included tools such as MetaTrader 4 And TradingView, both of high quality both operationally and analytically.