Bitcoin edged closer to $20,000 per coin as US stocks surged as Wall Street opened on Oct. 17.
BTC/USD hit $19,672, up 3.5% from weekend lows, according to data from Cointelegraph Markets Pro and TradingView on Bitstamp. The S&P 500 and Nasdaq Composite indexes gained 2.7% and 3.2%, respectively, over the 30-minute session as the pair rose in step with stocks.
The Empire State Manufacturing Index, which fell to -9.1 in October, well below forecast readings of -4.3 and -1.5 in September, combined with action to provide dismal US economic data.
Manufacturing activity in New York state fell according to the October survey, the New York Federal Reserve noted in a comment on the data.
Michal van de Poppe, the founder and CEO of trading company Eight, responded by noting that the results were “far worse than predicted”.
Top on yields and $DXY are approaching. He foresaw a bitcoin surge. The US Dollar Index (DXY) then began reversing some of its recent gains for the day, targeting 112 and down 0.65%.
Summing up the latest macro research, Mike McGlone, Senior Commodity Analyst at Bloomberg Intelligence, stated that “deflation in risk assets in 2022 and Fed tightening predict an elusive endgame.”
The lower commodity price fix may be needed to halt the Fed’s tightening and falling money supply. Cooling crude oil could revive gold and bitcoin.
While traders were already anticipating some comfort in the cryptocurrency markets’ weekly timeframes, other viewpoints reaffirmed that long-term, nothing had changed for Bitcoin in many months.
According to the most recent edition of its weekly newsletter, The Week On-Chain, on-chain analytics firm Glassnode has shown that “it is quite unusual for BTC markets to reach periods of such low realized volatility, with virtually all past instances very much preceding one fleeting displacement.”
Researchers, including chief analyst Checkmate, claimed that the market has reached an inflection point with a chart showing Bitcoin’s realized volatility.
“Historically, large price swings in either direction have been preceded by a week-long rolling volatility below the current 28% bear market level,” they added.
Glassnode concluded by stating that even if there was an opportunity for a price breakout, such as B. New all-time highs in BTC futures open interest, there is “no clear directionality in futures markets.”
The newsletter warned that “volatility is likely approaching and bitcoin prices are not known to remain stable for very long.”
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