The price of Bitcoin (BTC) collapsed to just $61,231 earlier today, according to CoinGecko data. The flagship cryptocurrency is down 17% from its all-time high.
Yet, despite the severe price drop, the Bitcoin market sentiment remains in the greed territory.
More than $505 million worth of long positions have been liquidated over the past 24 hours.
Underwhelming ETF numbers
The most recent drop coincided with Bitcoin exchange-traded funds (ETFs) posting their biggest outflows to date. On Tuesday, a whopping $326.2 million flowed out of these products. Grayscale’s GBTC appears to be the main bearish headwind with a staggering $443 million outflow.
BlackRock’s and Fidelity’s ETF products recorded very modest inflows ($75.2 million and $39.6 million, respectively).
This came after these ETFs kept shattering records earlier this month, pushing the price of Bitcoin to a new all-time high.
The upcoming Fed decision
Some investors might be taking a wait-and-see approach ahead of the much-anticipated decision by the Federal Reserve that is going to be unveiled on Wednesday.
The market consensus appears to be that the Fed will keep the benchmark interest rate unchanged for now, but concerns remain about its future direction. Stubborn inflation could prompt the central bank to delay rate cuts, which would not bode well for the bulls. Investors might be unwilling to bet on Bitcoin ahead of the decision, which could be the reason behind the underwhelming ETF numbers.
According to Goldman Sachs, the most recent cryptocurrency rally was mainly propped up by retail investors. However, there is also some institutional money coming into the market.
BOJ will support
economy, prices by maintaining accommodative monetary conditions for
time being
We could have waited
until inflation stays at 2% for long time, before exiting massive
stimulus but that could have led to sharp increase in upside risk to
price outlook
USD/JPY has dropped and is dropping a little further on Ueda:
This article was written by Eamonn Sheridan at www.forexlive.com.
The Greenback halted its ongoing recovery and retreated markedly after the Fed left its interest rates unchanged and Powell delivered a dovish message, all morphing into extra oxygen for the risk-linked galaxy.
Here is what you need to know on Thursday, March 21:
The USD Index (DXY) plummeted to the low-103.00s after advancing well north of the 104.00 barrier earlier in the session. A busy US calendar on March 21 shows the usual weekly Initial Jobless Claims along with the Philly Fed Manufacturing Index and advanced S&P Global Manufacturing and Services PMIs. In addition, the CB Leading Index is also due followed by Existing Home Sales and the speech by FOMC M. Barr.
EUR/USD managed to advance to multi-day peaks past 1.0900 the figure in response to the Dollar’s pullback. On March 21, flash HCOB Manufacturing and Services PMIs are due.
GBP/USD advanced further and traded at shouting distance from the key 1.2800 milestone, underpinned by the weaker Greenback. In the UK, the BoE meets along with the release of preliminary S&P Global Manufacturing and Services PMIs.
USD/JPY rose to levels last seen in mid-November around 151.80 as investors continued to assess the latest BoJ gathering. Data-wise, In Japan, the Reuters Tankan Index and Balance of Trade results are due on March 21.
AUD/USD picked up renewed traction and reversed four consecutive daily declines ahead of key releases on Thursday. In the Australian calendar, the advanced Judo Bank Manufacturing and Services PMIs are scheduled for March 21 along with the labour market report and the RBA’s Consumer Inflation Expectations.
WTI prices retreated from recent tops and broke below the $81.00 mark per barrel despite persevering supply concerns and the sell-off in the greenback.
Gold prices rose sharply and revisited the $2,180 region per troy ounce following lower US yields and the collapse in the Dollar. Silver advanced strongly and tested an area last seen in early December around $25.60 per ounce.
Fed Chair Powell reiterated views from recent testimony on Capitol Hill, believing the Fed will start cutting rates this year.
10-year US Treasury yields responded to the projections and press conference, falling by 0.37% to 4.277%. The US equity markets reacted to the forward guidance from the Fed. On Wednesday, the Nasdaq Composite Index rallied by 1.25%. The Dow and S&P 500 saw gains of 1.03% and 0.89%, respectively.
While the Fed will set the tone for the Thursday session, the Asian economic calendar also needs consideration. Preliminary private sector PMI numbers from the region, trade data from Japan, and employment figures from Australia will draw investor interest.
Upbeat service sector data from Japan and better-than-expected trade data could support demand for the Yen at the expense of Nikkei-listed export stocks. Economists forecast the Jibun Bank Services PMI to increase from 52.9 to 53.4 and exports to increase by 5.3% year-on-year in Feb. In January, Exports increased by 11.9% year-on-year.
Employment data from Australia could influence the RBA rate path and near-term trends for the ASX 200. Economists expect the Australian unemployment rate to fall from 4.1% to 4.0% in February.
On Thursday, the ASX 200 and Nikkei futures were up 49 and 770 points, respectively.
According to Powell, the federal funds rate is likely at its peak, and Fed will start cutting rates sometime this year. As usual, Fed is prepared to keep rates at high levels if appropriate. The Fed will slow the pace of sales from its balance sheet to prepare money markets for the upcoming rate cuts.
Interestingly, Powell talked about two-sided risks of being too hawkish or too dovish. The Fed has a dual mandate of targeting inflation and maintaining maximum employment and wants to strike a balance between these two goals.
Powell that recent inflation data did not show anything dramatic, and that he believed that data showed that inflation was still moving lower. This is an important comment as traders worried that recent inflation data could change Powell’s view on current inflation trends.
When asked about higher federal funds rate projections for 2025 and 2026, Powell said that rates would not get back to the very low levels that were seen before Fed started its rate hike cycle.
U.S. Dollar Index pulled back towards the 103.40 level as Powell noted that inflation was moving lower and signaled that Fed was ready to start cutting rates.
Gold rallied towards the $2180 level, supported by weaker dollar and Powell’s comments. Gold traders bet that the rate cut cycle would start soon, which is bullish for gold and other precious metals that pay no interest.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
XRP has recently experienced a sharp decline, breaking through key price levels that were considered strong support.
When looking at the price charts, we see that XRP struggled to move past the $0.65 mark, which has been a tough barrier for it in the past. The price fell below the $0.57 support line, showing that there is a strong bearish mood on the market.
Currently, $0.55 is seen as an important support level. If this level does not hold, the price could drop further to $0.50, a point where more buyers might step in to stabilize the price.
On the other hand, if the $0.55 level holds firm, there is a chance for the price to start recovering. But for a real upward trend to take shape, XRP needs to move above the $0.57 level and stay there.
The fall in XRP’s price can also be linked to the aggravating correction on the market, which has been somewhat expected.
Golden opportunity for USD
DXY, which measures the dollar’s value against a group of major currencies, has shown a “golden cross” pattern. This happens when the 50-day moving average crosses above the 200-day moving average, hinting at a long-term increase in the dollar’s value.
While this may be good news for the dollar, it could be bad for commodities and cryptocurrencies because a stronger dollar often leads to lower prices for these assets in dollar terms.
The DXY’s chart shows the 50-day moving average rising and crossing over the 200-day moving average, suggesting that more people might start investing in dollar-based assets and cash.
The DXY’s important levels to watch include resistance around the 104-point mark and support at the 103-point mark. Breaking past resistance could mean a continued uptrend for the dollar, while dropping below support might indicate the rally is losing steam, which could give other markets some relief.
Ethereum in poor state
Ethereum is nearing an important support level, but there is a major problem: the correction is looking worse than expected as the second-biggest cryptocurrency is nearing a price level that we have not seen for the last two weeks.
Looking at its price chart, Ethereum has dropped from its higher price points and is now focusing on a crucial support area around the $3,000 mark. This price level is important because it has previously served as a key point for buyers and sellers.
Whether Ethereum can stay above this $3,000 support is key. If it does, it might indicate potential for the price to go back up, as buyers could be encouraged by this historically significant level. However, if Ethereum falls below this level, it could quickly drop to the next support area around $2,800, indicating that the upward momentum might be weakening.
The next resistance level to watch is at about $3,500, a point Ethereum has had trouble rising above lately. If it can break through this resistance, it might continue to climb, possibly reaching the $3,700 mark. Yet, any upward move is expected to face challenges at various points along the way.
The market’s current view, based on Ethereum’s price action, is in an extremely poor state. Ethereum’s movement often affects the whole crypto market because of its major role on the altcoin market. Significant price movement by Ethereum could either boost confidence across the crypto space or lower it, impacting other cryptocurrencies and blockchain projects. As for now, most of the DeFi traction has moved to Solana blockchain, where meme coins are seeing far more demand than more substantial assets.
Paystand’s innovations recognized from a pool of 4000 global fintech nominations in the 8th annual awards program as company continues to grow its blockchain-enabled DeFi network
SCOTTS VALLEY, Calif., March 20, 2024–(BUSINESS WIRE)–Paystand, the global leader in blockchain-enabled B2B payments, today announced it has won the DeFi Innovation category in the 2024 Fintech Breakthrough Awards. More than 4000 fintech nominations were submitted for this competition.
The 8th Annual Fintech Breakthrough Awards program recognizes the most outstanding technology and companies propelling the speed of use of digital payment models and online product and service channels, shifting how companies operate. Paystand has been honored as one of the ‘breakthrough’ innovators in the fintech market today. Notable companies also named as fintech winners include Coinbase, J.P. Morgan Chase, Mastercard, Citi, Experian, and more.
The award recognizes Paystand for its decentralized finance technology, including:
The Paystand Network, which allows every Paystand customer as well as their payers (more than 800,000), to leverage the blockchain-enabled network for fast, secure and zero-transaction fees money movement. More than $8 billion has been transacted with the help of decentralized finance on Paystand.
Paystand Spend, a toolkit which allows businesses to also spend the money they get within the Paystand Network without having to execute any additional transactions. Money appears in only one business day in their Paystand account when engaging with other Paystand Network subscribers and are eligible for the industry’s first reward program for Bitcoin.
The world’s first Ethereum-based dynamic discounting application. In a world where cash is the lifeblood of businesses and can spell the life or death of a company, sellers can incentivize their buyers to pay early by offering customizable discounts to reduce DSO (days sales outstanding).
“We are incredibly proud to be recognized as the leader in DeFi innovation. With the power of the blockchain, Paystand is empowering businesses to escape financial gravity, thrive without unnecessary fees, and emerge as pioneers in a digitally-transformed financial era,” said Jeremy Almond, CEO, Paystand. “Our journey is intertwined with businesses embracing technology, as we steer them toward efficient financial operations, creating a new norm in the industry.”
The Paystand Network has been especially important during periods of banking uncertainty (the failure of Silicon Valley Bank in 2023 is one example). During that crisis, Paystand clients who banked with SVB could hold on to their received payments within the Network until they had a new bank account established to deposit them into. Knowing about the crisis, Paystand also was able to proactively put a stop on funds heading for SVB and let their clients know that their money was safe. In addition, Paystand’s ability to speed up the AR process, so companies could get their money faster, also helped out while bank funds were inaccessible. Paystand estimates that they helped more than 30 clients navigate the crisis during this time.
Paystand customers come from the ‘real economy’ including industries such as manufacturing, logistics, distribution, insurance, renewable energy and more, all continuing to grow. These customers are able to accelerate their time to cash through the blockchain-enabled Paystand Network.
Paystand’s Additional DeFi Initiatives
In February 2024, Paystand announced the launch of Paystand.org, its corporate social responsibility (CSR) arm, which harnesses the power of blockchain and emerging bitcoin circular economies to create financial opportunities within vulnerable and underrepresented communities.
“At Paystand, we believe that the Bitcoin Blockchain has the power to change the world and provide opportunities for economically disadvantaged people,” said Alexandra Navarro, Head of Paystand.org. “Lack of access to banking, burdensome service fees, long payment delays with too many intermediaries, and difficulty obtaining credit and capital are just a few of the challenges that unbanked people face. With the three pillars of financial inclusion, tech adoption, and education for underserved populations, Paystand.org is partnering with organizations who are tackling these problems directly.”
In addition to their work with underserved populations, Paystand’s CEO Jeremy Almond co-hosts The reDeFined Podcast, a show that invites blockchain technology builders, entrepreneurs, and thought leaders from different industries to explain the impact blockchain technology is having behind the scenes.
“What we’re building at Paystand is just a small piece of a wider movement happening globally,” said Almond. “It’s important that we celebrate the quiet work behind the scenes building a decentralized financial system with real economic empowerment. We’re honored to be recognized by the Fintech Breakthrough Awards for Paystand’s tech.”
About Paystand
Paystand is on a mission to create an open commercial finance system, starting with a zero-fee network for B2B payments. Paystand is the largest B2B receivables, payables and payments network running on a commercial blockchain. The company makes it possible to digitize receivables, automate processing, reduce time-to-cash, eliminate transaction fees, and enable new revenue. The AR/AP solutions are designed for both U.S. and LATAM businesses of all sizes. For more information about Paystand, visit us at paystand.com. Follow our blog, and connect with us on Twitter and LinkedIn.
Prior to the FOMC and Powell press conference the CME’s FedWatch tool had the probability of a June ’24 rate cut around 50% (a couple of tics either side depending on when you last checked.
That’s jumped now to just shy of 70%.
It’ll depend on progress on inflation from here into that June meeting. I think the FOMC is making the same mistake with its ‘transitory’ groupthink and ignoring the danger of continued high inflation.
This article was written by Eamonn Sheridan at www.forexlive.com.
This weekly data preview focuses on USOIL and XAUUSD, with upcoming economic data later in the week serving as the main market influencers for the short-term outlook.
Below, we look at the key factors impacting economic data this week.
Wednesday:
UK inflation rate at 7:00am GMT. The consensus is for a decline from 4% to 3.5% in February. If these forecasts hold true, it could mark the lowest yearly inflation figure for Britain and might lead to slight losses for the pound, potentially influencing the Bank of England’s decisions at its meeting the following day.
FED interest rate decision at 6:00pm GMT is broadly expected to stay steady at 5.5%, with the probability of less than a 1% cut. Participants are focusing closely on what the comments of the central bankers in the subsequent press conference will be to get some hints as to the future direction of monetary policy.
Japanese balance of trade at 11:50pm GMT, where the expectations are for a decline in the trade deficit from ¥-1,758.3bn to ¥-810.2bn for February. If the expectations are correct, then the yen could face some support against the currencies traded against it.
Thursday:
The Bank of England decides on its interest rate at 12:00pm GMT. The general expectation is that the central bank will hold its rate stable at 5.25%. However, in the event that there is an interest rate hike, it could give some support to the pound across various pairs, particularly the US dollar. In the unlikely event of a cut though, it might have a negative effect on the British pound in the aftermath of the release.
Japanese inflation rate at 11:30pm GMT. The expectation for February is that the rate could go up to 3% from the previous 2.2%. This might be somewhat bullish news to the market participants trading the yen.
USOIL, daily
Oil prices reached a four-month high due to lower crude exports from Iraq and Saudi Arabia, as well as signs of stronger demand and economic growth in China and the US. Iraq plans to reduce crude exports in the coming months to adhere to its OPEC+ quota, while Saudi Arabia’s crude exports decreased for the second consecutive month.
Stronger-than-expected economic growth in the US and robust demand for crude oil in China are contributing to the upward pressure on oil prices.
On the technical side, the price is trading in a rather aggressive bullish trend and is currently testing the resistance of the upper band of the Bollinger bands. The 50-day moving average is trading well above the 100-day moving average, validating the bullish momentum in the market. However, the stochastic oscillator is trading in the extreme overbought levels, hinting that a correction to the downside might be imminent. However, the aggressive rally does not give much confidence to the bears. Without any significant signals of a reversal, the dominant scenario is for a continuation of the current move north. If this is confirmed in the upcoming sessions, then the first area of possible resistance might emerge near the $84 price region, which is the psychological resistance of the round number as well as the 61.8% of the weekly Fibonacci retracement level.
Gold-dollar, daily
As the FOMC meeting approaches, the price of gold is facing difficulties in attracting buyers and remains steady above a one-week low. Factors such as reduced expectations of a Fed rate cut, higher US bond yields, and a stronger USD (mainly due to the inflation data released last week that showed an uptick in the actual figure) are causing the gold price to perform lower.
Geopolitical tensions may offer some support to gold and could also limit its losses. Also, if we review the Commitment of Traders report, we can see a decline in the number of commercial traders, suggesting that the price of gold might fall. Commercial traders’ figures are inversely related to the price. This is because commercial traders like to buy at lower prices, leading to decreasing figures when prices are high. As a result, prices are pushed down in the short term.
From a technical point of view, the price has corrected from its all-time high of around $2,195 down to $2,155 where it currently trades. In yesterday’s session, the price found sufficient resistance on the 23.6% of the daily Fibonacci retracement level and is currently on the move to cover the bullish candlestick to continue its correction move to the downside. The stochastic oscillator is near its overbought levels, though it’s on the move to reach the neutral levels given that the bearish move continues in the short term. The Bollinger bands are still quite expanded, indicating that volatility is still high in the gold market, while economic data coming up later this week is broadly expected to create even more volatility, especially for the instruments traded against the dollar.
This article was submitted by Antreas Themistokleous, an analyst at Exness.
Disclaimer: The opinions in this article are personal to the writer and do not reflect those of Exness or LeapRate.
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