- The price of Bitcoin is trading around $40,000 after surging past $41k on Monday, the highest level in more than two weeks.
- Early last week, the Bitcoin price had fallen to $31,000, and since then, it has rallied about 30%.
“Getting back above $40,000 was technically a positive,” said Art Hogan, chief strategist at National Securities.
“The folks who look at this using technical analysis would tell you that when it breached $40,000, that sent a negative signal, and now that it’s recaptured that level, it sends a positive signal.”This latest rally, as we reported, came amidst a set of bullish news in the form of MicroStrategy completing its $500 million senior notes offering and filing for the sale of $1 billion MSTR shares to buy even more Bitcoin.
If we are still in a bull market.. looking at previous corrections from big draw downs.. end Q3 – Q4 could be fruity.
Lose the lows and its obviously a very different ball game. pic.twitter.com/KskwVzAe7R
— f i l ₿ f i l ₿ (@filbfilb) June 14, 2021
Tesla CEO Elon Musk also clarified that the electric car maker would accept BTC once it's mined by 50% clean energy.
The biggest endorsement for Bitcoin came from Paul Tudor Jones, who wants to invest 5% of his portfolio in Bitcoin, just like cash, gold , and commodities. “I like Bitcoin as a portfolio diversifier,” he said.
The FOMC meeting this week is of significance as well. Not just crypto, but the stock market is also eagerly awaiting Federal Reserve Chairman Jerome Powell’s reaction to recently recorded high inflation.
“In order for Bitcoin to resume that rally, I think you’re going to need to see more widespread legitimate adoption,” said Tom Essaye, a former Merrill Lynch trader.
Already, El Salvador has become the first country to adopt Bitcoin as legal tender. As we reported, the Central American Bank for Economic Integration, which is made up of 17 member states, called it a “really big deal,” adding, “we're really proud that they've made us part of this new policy.”
“BCIE is accompanying El Salvador in this new and innovative policy of adopting the cryptocurrency called Bitcoin for legal use,” said President Dante Mossi.
Crypto vs Retail Favorite Stocks. Great chart. https://t.co/JiJ5rq1axj
— Alex Krüger (@krugermacro) June 15, 2021
Besides Bitcoin, the stock market is also enjoying an uptrend, with the S&P 500 hitting a new ATH at 4,255.15. While at 34,393.75, Dow Jones Average is near its May peak, tech-heavy Nasdaq which has been in an uptrend since last month, soared past 14,174 to a new high.
USD also shows strength at 90.634, but gold has taken a slide to $1,863 per ounce.
As for the cryptocurrency market, altcoins are also seeing green since last week, with the total market cap now above $1.7 trillion. However, according to Barry Silber, the founder and chief executive officer of Grayscale’s parent company, Digital Currency Group, 99% of cryptos are “overpriced.”
"99% are overpriced" just means anything i don't own is overpriced
Its the number one crypto playback since 2012, it doesn't actually mean anything
— loomdart (@loomdart) June 14, 2021
Silbert also shared he is preparing for “macro fireworks” and, as such going long the VIX which represents the market's expectations for volatility over the coming 30 days. He added,
“No clue what will be the spark, hence the volatility hedge. but food prices, oil prices, investor complacency, speculative excess, lack of trust in the Fed, interest rate normalization, meme stocks, overpriced cryptos, etc., are all on my mind.”
40,184.5474 -$433.99 -1.08%
- Volume 43.42 b
- Change -$433.99
- Circulating 18.74 m
- Market Cap 752.88 b
The post Macro Fireworks: Stock Market Soars to New ATH While Bitcoin Awaits the Breach of An Important Level first appeared on BitcoinExchangeGuide.
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