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- Bitcoin fell 5.4 percent on Thursday, ending the day near $39.6K, and fell another 1% in 24 hours to $38.9K on Friday morning. Ethereum has remained nearly unchanged (-0.3 percent) over the same time period, while other leading altcoins from the start are changing in different directions, ranging from a 1.6 percent increase (XRP) to a 1 percent decrease (BNB).
- The total market capitalization of the cryptocurrency market fell by 0.2 percent on the day to $1.74 trillion. Because of the greater stability of altcoins, the bitcoin dominance index continues to fall, falling from 42.7 percent yesterday to 42.4 percent today.
- Bitcoin has fully recovered from Wednesday’s loss, which was caused by the adoption of the first document on cryptocurrency regulation in the United States.
- The decline in stock indices and the rise of the dollar also hampered purchases of the first cryptocurrency, which frequently moves in tandem with the general demand for risks.
- Goldman Sachs, one of the world’s largest investment banks, is expanding its offering for trading digital assets. The bank is considering the launch of bilateral cryptocurrency options.
- World-famous investor and author Robert Kiyosaki has warned that the global economy is on the verge of hyperinflation and has advised investors to “stay away” from the stock market.
- Against the backdrop of a severe crisis in the Russian Federation’s financial system and restrictions on the circulation of the dollar and euro, the population’s demand for cryptocurrency has skyrocketed. It is now primarily used for international capital transfers or “hard” currency parking.
- Analysts believe that regulators will be unable to prevent such transactions effectively. However, the state is aided by cryptocurrency exchanges, which block Russians on their own initiative. There are still the possibilities of peer-to-peer platforms, or transfers between individuals. However, there are significant fraud risks associated with such transactions.
·Disagreements in Europe over cutting off Russian energy continue. As has been stated numerous times, such a move would be tantamount to Europe shooting itself in the foot.
·Slovenian Prime Minister Janez Jansa is the latest to declare that Europe is “strong enough to manage” the loss of Russian energy imports. He does, however, state that “not all colleagues agree.” Germany has been one of the most vocal opponents of such a move, and when that is the case, things are usually a no-go.
·Stocks hold higher for the time being. Eurostoxx +0.3 percent, Germany DAX +0.4 percent, France CAC 40 +0.4 percent, UK FTSE +0.7 percent & Spain IBEX +0.6 percent.
- This comes on the heels of a poor showing yesterday, which followed a blowout session on Wednesday. The drop yesterday could be attributed in part to the ECB hastening the tightening of policy. But, in general, there are some unresolved feelings about the war narrative that we have yet to resolve.
- US futures are also not indicating much so far today, with the S&P 500 futures currently flat.
- The market is attempting to gradually reduce Russia-Ukraine risks, but all it takes is one headline to reawaken investor fear.
- The dollar is leading the way to begin the session. With USD/JPY currently within touching distance of 117.00, it appears to be putting a bid in the greenback across the board.
- The dollar is currently trading near the day’s highs against most major currencies, with EUR/USD easing from 1.1000 to just below 1.0970:
- The 100-hour moving average @ 1.0954 is still assisting in keeping the near-term bias more neutral, but it will be a key support level to keep an eye on.
- Meanwhile, the GBP/USD is falling further, with little to stop it from falling below 1.3000.
- Elsewhere, the dollar is up 0.4 percent against the Australian and New Zealand currencies. AUD/USD is currently down from 0.7355 to 0.7326, while NZD/USD is down from 0.6858 to 0.6835.
- There aren’t many headlines to work with this session, so it’s difficult to attribute this to anything other than dollar flows resulting from a rise in USD/JPY amid the potential technical break outlined earlier.