Expectations of a collapse of Bitcoin to the levels of 10 thousand dollars.
After the release of US inflation data, Bitcoin rose after the violent downward wave,
to record a rise from the last bottom near the levels of 19000 dollars,
to settle currently at 25000 dollars.
BlackRock announced last week the launch of a Bitcoin fund,
and this step represents a part of the company between it
and the cryptocurrency exchange Coinbase.
topic
Global central banks are closer to maintaining high interest rates.
US inflation
With US inflation data close to the lowest levels and a boost to confidence,
the chief analyst at Euro Pacific Asset Management believes that this is not positive and cannot continue.
He also refers to his expectations of a collapse in the markets
and advises people to get out of the market and get rid of the quantities they have at a time
when some investors are still making profits.
He also believes that the cryptocurrency market is just a big bubble,
and that the recent decline of Bitcoin from levels of $ 69 thousand did not change his view,
and he believes that the real beneficiaries are those who get rid of Bitcoin at the present time,
as he expects to limit another collapse and we may see Bitcoin at levels of 10 thousand dollars.
Technically, we see that Bitcoin is facing a very important resistance level at a little $25,000,
with the emergence of a negative divergence between the price movement and the RSI,
and thus a sign of a loss of positive momentum and should be expected to occur.
artical name Expectations of a collapse of Bitcoin
Global central banks are closer to maintaining high interest rates.
In an attempt by the central banks to confront the high inflation during the last period,
the central banks seek to raise interest rates,
and expectations also indicate that the central banks will not resort to easing until
after making sure of the recovery of some indicators
that show strong points that inflation has reached its peak.
In addition to the vision of fund managers and analysts,
which indicates the delay in resorting to monetary policy until 2024,
while the survey showed the division between the opinions of analysts
and fund managers regarding the return on government bonds,
which reached its peak, at a time when US 10-year bonds rose.
Which makes investors that this represents an important point for resorting to hedging now,
with the decline in the US dollar index compared to the highs last month,
when it reached its peak in 7 years at levels of 108 points.
The markets were affected by the fluctuations witnessed last week,
affected by the economic data that was released,
at a time when the gap between bond yields for two years and 10 years
reached the deepest point of 1082 after the release of US inflation data that came less than expected.
The data also had an impact on the decline of the US dollar with a rise in stocks,
with investors reducing their bets on raising interest rates by 75 points
by the US Federal Reserve at a time when
the US Central Bank did not concede to its target in the face of inflation.
The reports indicated that the released data is very important to the markets
and brings optimism regarding the economy’s move for the better,
but at the same time, investors fear the time period that is required to reach the inflation target,
and also bearing in mind that this period will be volatile,
unstable and unclear.
And they see that Japan will actually come out of the negative interest area during the first or second half of 2023,
and they answered that they cannot see clearly what will happen,
but the sentiment is still positive during this month.
In Europe, the negative situation dominates them a lot because they recognize the upcoming recession
and consider it the basic scenario,
with rising fears due to the political situation in Italy with
the decline in the concentration on the euro and its record levels of decline.
Expectations indicate a decline in commodity markets,
and 50% of those who answered the survey are trying to take new positions with less risk than usual for their portfolios.
artical name Expectations of a collapse of Bitcoin