Stocks across Asia and Europe rise on Economic growth indicators

October 12, 2023 Coin Telegraph

Stocks across the Asia Pacific region marked a second consecutive day of bullish growth as the European stock market reached a three-week high.

Stock markets in the Asia-Pacific region and Europe saw gains on Thursday. This uptick was attributed to the United Kingdom’s economic recovery, China’s recent stimulus measures and expectations surrounding the United States Consumer Price Index.

The Hang Seng Index in Hong Kong led a positive movement in the Asian markets. The Oct. 12 rise came after reports that China’s sovereign wealth fund increased its investment in some of the country’s major banks.

In Europe, the stock market rally was bolstered by data from the United Kingdom, with reports showing economic growth in August, although some sectors still lagged.

China led bullish stock rally in Asia

China’s sovereign wealth fund announced an increase in its holdings in the country’s four largest banks on Thursday, Oct. 12. The news helped shares of all three main lenders in the country go up during Shanghai’s trading hours. Bank of China stock increased by 3.2%, the China Construction Bank saw an increase of 2.7%, the Industrial and Commercial Bank of China registered a 2.5% gain, and the Agricultural Bank of China jumped 0.6%.

China’s stimulus decisions also helped Hong Kong’s Hang Seng Index rise by 1.9% to 18,257 points for the day, marking the sixth consecutive day of gains for the benchmark index — its longest winning streak since November 2021.

*Hong Kong Hang Seng Index daily price chart. Source: investing.com*

Japan’s Nikkei 225 index recorded another 1.8% gain on Thursday to reach 32,494.66 points, marking its second consecutive day of gains

*Japan Nikkei 225 index daily price chart. Source: Investing.com*

European stocks three-week high led by London

The British economy rose 0.2% in gross domestic product terms in August compared to the previous month, exceeding estimates of less than 0.1%. This GDP growth helped reverse a slide in the economy that began in July with a 0.5% contraction.

The bullish economic growth for the U.K. helped European stock markets rise to a new three-week-high. The benchmark London stock FTSE 100 Index rose 0.8%, the French CAC 40 was up 0.6% and the pan-European Stoxx 600 traded 0.8% higher on Thursday.

Vintage Markets is dedicated to the in-depth exploration and reporting of traditional financial news, tracing the journey of global markets and economies from the Stone Age to the Stoned Age.

Asian markets surge as European stocks show mixed performance

October 11, 2023 Coin Telegraph

Coin Telegraph

Asian stocks surged across the board on Wednesday led by South Korean market while European markets had a mixed day.

The stock market in Asia and Europe had a contrasting day where a majority of the stock markets across the Asia-Pacific region climbed across the board while European markets had a mixed day. While South Korea's bullish rally drove Asian markets, European shares faced downward pressure from underperforming luxury stocks.

South Korea leads Asian stock rally

South Korea took the lead on Wednesday among Asia Pacific stocks aided by a surge in its tech stocks. South Korea’s Kospi closed the day with a 1.98% gain at 2,450.08 points hitting a two-week high while chip giant Samsung Electronics jumped 2.71%.

Japan's Nikkei 225 scaled a notable 0.6% to reach 31,936.51 points, its highest level in over two weeks. This stability can be attributed to a recent Reuters Tankan survey, which indicated consistent business morale among major Japanese firms.

*Nikkei 225 index daily price chart. Source: Investing.com*

The Hang Seng index in Hong Kong surged 1.4% in the final hour of trading, on track to rise for the fifth straight session. In Hong Kong, investor optimism was boosted Wednesday by a Bloomberg report that the government is considering increasing building investment to bolster the economy.

*Hang Seng index daily price chart. Source: Investing.com*

Mainland Chinese markets finished higher, with the benchmark CSI 300 index rising 0.28% to 3,667.55 points.

European stocks show mixed returns

European equities fell on Wednesday, with luxury conglomerate LVMH dragging the sector lower on disappointing sales, while Novo Nordisk surged after a favourable update on its diabetes treatment Ozempic.

The pan-European stock index STOXX 600 rose 0.1% to a one-week high while most regional markets were neutral. France's blue-chip index FCHI underperformed most others registering a decline of 0.6% on daily charts.

LVMH fell 6.6% to a 10-month low after reporting a 9% increase in third-quarter revenue, indicating slower growth as a big wave of post-pandemic spending eases. Shares of Hermes and Kering plummeted more than 2% each.

Vintage Finance is dedicated to the in-depth exploration and reporting of traditional financial news, tracing the journey of global markets and economies from Stone Age to Stoned Age.

Asian and European stocks rally amid a wave of risk appetite

October 10, 2023 Coin Telegraph

Asia

Asian and European stocks registered a bullish surge on Tuesday owing to the Fed’s hawkish outlook on interest rates.

Oct. 10 saw major Asian and European stocks surge higher owing to a wave of risk appetite.

Another major factor that played a key role in the bullish resurgence of European and Asian stocks was the United States Federal Reserve’s optimistic outlook on bond yields.

U.S. Treasury yields fell sharply on Tuesday, with Federal Reserve officials hinting that the central bank may be done raising interest rates. Fed Vice Chair Philip Jefferson said the institution may “proceed carefully” in determining whether any additional rate rises are necessary, while Dallas Fed President Lorie Logan suggested that rising Treasury yields might prevent the Fed from doing so.

The early-week rush into supposedly safe assets like the dollar, gold and government bonds calmed considerably on Tuesday, while oil prices also saw a retreat from their spike on Monday.

Asian stock market regains bullish momentum led by Japan

The Asian stock market surged higher on Tuesday, led by Japan’s bullish momentum. Japan’s benchmark index, the Nikkei 225, registered a rise of more than 2.4%, closing the day at 31,763.50 points and leading stock advances in the region just a day after the nation returned from a national holiday.

The rise in Japan’s benchmark index was fueled by a surge in oil and gas exploration company Inpex Corporation, which registered the largest increase of 8.6%.

*Japan’s Nikkei 225 price chart. Source: Investing.com*

South Korea’s leading Kosdaq Index fell 2.62% to close at 795 — its lowest level since March 16 — while the Kospi Index reversed previous gains to dip 0.26% and finish at 2,402.58, its lowest level since March 21.

Hong Kong’s benchmark Hang Seng Index saw an increase of 0.84% in its final hour due to Fed’s hawkish comments. On the other hand, mainland Chinese markets were down, with the CSI 300 index declining 0.75% to 3,657.13, marking a third consecutive day of losses.

European markets see a bullish surge

Tuesday saw a significant recovery in European stocks owing to dovish remarks from U.S. Federal policymakers, which boosted the morale of the market.

Europe’s benchmark STOXX 600 index rose 1.5%, approaching its largest single-day percentage gain in nearly four weeks. After a spike in oil prices, and as investors looked for refuge in Treasurys and gold, the index was on its way to recover from Monday’s 0.3% decline.

*STOXX 600 index daily price chart.Source: Investing.com*

The United Kingdom benchmark FTSE 100 Index rose to a one-week high on Tuesday owing to the Fed’s bullishness and expectations that the Bank of England would hold off on raising interest rates. On the other hand, the more domestically focused FTSE 250 Index rose by 1.6%, while the globally focused FTSE 100 jumped 1.4%.

Vintage Markets is dedicated to the in-depth exploration and reporting of traditional financial news, tracing the journey of global markets and economies from Stone Age to Stoned Age.

How do the Fed’s interest rates impact the crypto market?

March 3, 2023 Coin Telegraph

Coin Telegraph

Cointelegraph analyst and writer Marcel Pechman explains how the U.S. Federal Reserve’s interest rates impact the crypto market.

The show Macro Markets, hosted by Marcel Pechman, which airs every Friday at 12 pm ET on the Cointelegraph Markets & Research YouTube channel, explains complex concepts in layman’s terms and focuses on the cause and effect of traditional financial events on the day-to-day crypto activity.

In today’s episode, crypto analyst Pechman analyzes the United States Federal Reserve interest rate and its relationship with cryptocurrency markets. For instance, high-interest rates are detrimental to risk assets. However, investors usually price today’s action on how the economy will be in six months or longer.

Viewers will learn why trusting charts and indicators can be misleading, as anyone can pick timeframes and scales that favor their biases and opinions. Pechman shows this in real-time by literally adjusting the scales and time frames to match his school of thought.

The episode continues by explaining the correlation between Bitcoin and the stock market — especially when investors fear a recession is coming or the cost of capital favors fixed income — followed by a deep dive into volatility indicators, including the stock market volatility index (VIX).

Pechman goes on to explain how the most common volatility metric is backward-looking and even more complex instruments, such as the VIX indicator, should be interpreted.

To close the Macro Markets show, Pechman will apply his expert knowledge to explain real-life examples from gold markets, Tesla stocks and news articles in a straightforward and non-technical manner.

If you are looking for exclusive and valuable content provided by leading crypto analysts and experts, make sure to subscribe to the Cointelegraph Markets & Research YouTube channel. Join us at Macro Markets every Friday at 12:00 pm ET.

The creator of the FTSE100 launches indices for crypto

November 29, 2022 Coin Telegraph

Coin Telegraph

The constituent coins that make up the indices have not yet been released, but it does include performance data for the first three quarters of 2022.

FTSE Russell, creator of the FTSE100 stock index, has released a series of indices whose constituents are digital assets, according to a press release released via its website on Nov. 29. The series has been produced in cooperation with Digital Asset Research. FTSE Russell is a subsidiary of the London Stock Exchange.

*The 2022 performance of the FTSE Digital Asset Index - Large/Mid, as stated* *in the index’s fact sheet*

Indices have been used in the stock market throughout its history to track particular areas of the market. But there were relatively few made up of cryptocurrencies prior to 2021.

The FTSE Digital Asset Index series appears to be the first issued by a company based in the U.K. It joins the list of crypto indices that have been released by U.S. and German companies since early 2021, including the S&P Cryptocurrency Index series, the Nasdaq Crypto Index, and the CMC Crypto 200 Index series by Soloactive.

The new series contains eight indices total, including one each for large cap, mid cap, small cap, and micro cap coins, as well as four indices that combine coins from multiple market cap sizes. The company has not released a list of constituents for each index yet, but it has released a fact sheet for each one showing performance data for Q1-Q3, 2022.

In the press release, Arne Staal, CEO at FTSE Russell, argued that the new indices will help to bring transparency to the crypto market, stating:

“FTSE Russell has taken a measured approach to this frontier investment space and has built a rigorous and transparent framework, underpinned by robust governance and comprehensive data to meet investor needs, both where they are now and as they prepare for change in this market.”

According to the company’s website, the new indices rely on a standardized set of 21 criteria to determine which institutions can be counted on to prove accurate pricing data. Once a set of institutions is decided on, the price data from these institutions is used to determine which coins go in each index and to determine the overall performance of the index.

Next few weeks are ‘critical’ for stock market and Bitcoin, analyst says

October 2, 2022 Coin Telegraph

Coin Telegraph

Alessio Rastani, a cryptocurrency analyst and trader, shares his outlook on crypto, stocks and the forex market for the next weeks.

The stock market’s movements in the next few weeks will be critical for determining whether we are heading towards a short-term recession or a long term-one, according to forex trader and crypto analyst Alessio Rastani.

During the October-December 2022 period, the analyst expects to see the S&P rallying. "If that bounces or rally fails and drops back down again, then very likely, we're entering a long-term recession and something very close to similar to 2008", said Rastani in the latest Cointelegraph interview.

According to the analyst, such a recession could last until 2024 and would inevitably negatively impact the price of Bitcoin (BTC).

Talking about the latest Pound sterling crisis, Rastani opined that its principal cause is the rally of the U.S. dollar, which is putting pressure on most other fiat currencies, including the yen and the euro. However, in Rastani's view, the U.S. dollar is approaching the top.

"Once we see a clean break, a sustained break of 111.5 and 110 levels on the dollar index, then I think the top is in for the dollar. And then I'm looking for a multi-month decline in the dollar back to 104 to the 100 level on the dollar index," he explained.

Check out the full interview on our YouTube channel and don’t forget to subscribe!

20% drop in the S&P 500 puts stocks in a bear market, Bitcoin and altcoins follow

May 20, 2022 Coin Telegraph

Altcoin Watch

Recession fears mount as a 20% decline in the S&P 500 places stock in a bear market, increasing the chance that BTC and altcoins will make new lows.

Whoever coined the phrase “sell in May and go away” had brilliant insight and the performance of crypto and stock markets over the past three weeks has shown that the expression still rings true.

May 20 has seen a pan selloff across all asset classes, leaving traders with few options to escape the carnage as inflation concerns and rising interest rates continue to dominate the headlines.

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) taking on water below $29,000 and traders worry that losing this level will ensure a visit to the low $20,000s over the coming week.

*BTC/USDT 1-day chart. Source: TradingView*

As reported by Cointelegraph, some analysts warn that BTC could possibility decline to $22,700 based on its historical price performance following a death cross.

Further evidence of muted expectations from traders can be found in the put/call ratio for BTC open interest, which hit a 12-month high of 0.72 on May 18 according to the cryptocurrency research firm Delphi Digital.

*Bitcoin put/call ratio on open interest and volume. Source: Delphi Digital*

Delphi Digital said,

“A high put/call ratio indicates that investors are speculating whether Bitcoin will continue to sell off, or it could mean investors are hedging their portfolios against a downward move.”

Stocks enter bear market territory

May 20 brought more pain to the traditional markets as the S&P 500 fell another 1.62%, marking a more than 20% decline from its January 2022 all-time high and further stoking recession fears. If the index manages to close the day down 20% from the all-time-high, that would officially put the benchmark index in bear market territory.

*Performance of the major indices on May 20. Source: Yahoo Finance*

The Nasdaq Composite and Dow have also seen significant losses amid the widespread weakness, with the Nasdaq losing 275 points for a 2.42% loss, while the Dow has fallen 362 points, marking a decline of 1.28%.

What's bad for BTC is even worse for altcoins

*Daily cryptocurrency market performance. Source:* *Coin360*

Altcoins also sold off sharply as BTC, Ether and stocks pulled back, reversing the gains seen earlier on the day.

The few bright spots were Ellipsis (EPS), Persistence (XPRT) and 0x (ZRX), which gained 30%, 13.92% and 12.34% respectively.

The overall cryptocurrency market cap now stands at $1.234 trillion and Bitcoin’s dominance rate is 44.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Crypto-related stocks jump in positive reaction to executive order

March 10, 2022 Coin Telegraph

bitcoin regulation

Crypto and blockchain-related companies have enjoyed a surge in prices after the market received Joe Biden’s executive order with open arms.

The stock prices of crypto-related companies have jumped as the broader market reacted positively to President Joe Biden’s long-awaited executive order requiring US federal agencies to create a regulatory framework for digital assets, as well as exploring a future digital dollar.

Coinbase (COIN) surged, up 10.5% at market close, while shares in Bitcoin-evangelist Michael Saylor’s MicroStrategy (MSTR) posted a 6.4% gain, according to TradingView.

Blockchain-related exchanged-traded funds (ETFs) also enjoyed the markets’ renewed confidence in crypto, with ProShares Bitcoin Strategy ETF (BITO) gaining 10% and Valkyrie Bitcoin Strategy ETF (BTF) closing up 10.3%.

Cryptocurrency mining companies enjoyed the largest gains with Riot Blockchain Inc. (RIOT) shares up 11.2% and Marathon Digital Holdings Inc. (MARA) rose 13.5% with Jefferies (JEF) analyst Jonathan Peterson, reportedly restoring his buy rating for MARA in a note to clients and stating that crypto miners are likely to gain now that the U.S Government is “more formally recognizing, engaging with and seemingly supporting” the digital asset industry.

While 10% swings are common in crypto, these are unusually volatile moves on traditional markets. And despite the past day's increase, Coinbase is still down nearly 48% from it’s direct listing price in Apr. last year, while RIOT is in an even worse position, currently down 76% from it’s most recent high in Feb. 2021.

Bitcoin (BTC) itself jumped 9% after details concerning the executive order leaked last night, before settling back to the current 5% gain.

Aside from the immediate positive price action, the executive order was considered by most investors to be if not a net positive for the crypto industry, at least a lot less bad than had been feared. President Biden called the rise of digital assets, “an opportunity to reinforce American leadership in the global financial system and at the technological frontier”.

The order didn’t explicitly state what sort of regulatory measures could be expected, butthe overall sentiment from the US Federal government seemed constructive — meaning that the executive order will potentially work to expand the adoption of virtual currencies within the U.S. financial system.

This was further supported by the Treasury Secretary Janet Yellen who said in a statement that legislation will aid consumers and businesses.

"President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy," Yellen said. "This approach will support responsible innovation that could result in substantial benefits for the nation, consumers and businesses."

Minnesota Congressman, Tom Emmer provided an insightful breakdown of the areas that the executive order glossed over, warning his 48,000 Twitter followers that they have no reason to expect that the US government will prioritize policies for open, permissionless or private technology.

1) Decentralization is the Point: The EO doesn’t mention decentralization once. The disintermediation of our economy will enable all Americans, regardless of circumstance, to decide their futures, not a bank or Big Tech or the government.
— Tom Emmer (@RepTomEmmer) March 10, 2022

He added however the one of the most promising parts of the executive order was that it "doesn’t ask the SEC to weigh in. SEC Chair Gensler has spent the past year intimidating crypto innovators and entrepreneurs with his unproductive regulation by public statement and enforcement action. His input is not critical."

Gensler weighed in on the news anyway, deciding to post his support for Biden’s regulatory efforts on Twitter.

Today, @POTUS signed an Executive Order on crypto-assets. I look forward to collaborating with colleagues across the government to achieve important public policy goals: protecting investors & consumers, guarding against illicit activity, & helping ensure financial stability.
— Gary Gensler (@GaryGensler) March 9, 2022

Gensler’s tweet was received with criticism from some in the cryptocurrency community on Twitter, given his oft expressed skepticism for the digital asset industry.

Ryan Selkis, the CEO of Messario Crypto, put Gensler directly in the crosshairs, claiming that Gensler’s goals have nothing to do with investor protection.

With any luck, you’ll be completely boxed out of meaningful input as your personal goals have nothing to do with investor protection, market stability or blocking illicit activity.

Fitting you say nothing about capital formation here.

Keep promoting CCP companies over crypto!
— Ryan Selkis (@twobitidiot) March 9, 2022

Zooming out, the overall share market rose on Wednesday, with the S&P 500 posting a 2.5% gain despite continued geopolitical tension in Eastern Europe.

Elon Musk’s Tesla is already $1 billion in profit from holding Bitcoin

October 14, 2021 Coin Telegraph

<div>Elon Musk's Tesla is already billion in profit from holding Bitcoin</div>

Bitcoin Analysis

Tesla's Bitcoin stash is now worth $1 billion more than when Elon Musk approved the purchase in February.

Tesla's (TSLA) bold foray into the Bitcoin (BTC) market has been paying off in 2021 as BTC price rallies in October to hit over $58,000 on Oct.14.

Tesla currently holds roughly 43,200 BTC, worth roughly $2.5 billion at today's prices, according to online monitoring resource Bitcointreasuries.net. This is approximately 65% or $1 billion more than what the carmaker paid in February when Elon Musk's company revealed that it added $1.5 billion in BTC to its balance sheet.

*BTC/USD daily price chart. Source: TradingView.com*

In Q2, Tesla's sold 10% of its Bitcoin holdings — about 46,000 BTC — at a reported average price of around $50,000 per token. In its Q2 earnings report, the company had notified that it booked gains worth $128 million from its Bitcoin sale.

Tesla made first billion in profit in Q2 from selling cars

Following the latest Bitcoin price rebound, Tesla's net profits from its crypto holdings came out to be as much as its income from Q2.

In detail, Tesla had reported $1.14 billion in net profit for Q2, the first time it ever crossed the one billion dollars mark. The income was a part of $11.96 billion in revenue that Tesla made mostly by selling cars — about $10.21 billion. The remaining $354 million came from the sales of regulatory credits.

Tesla revealed on Oct. 1 that it had delivered 241,300 electric vehicles during Q3, compared to 201,250 vehicles in the previous quarter. Combined with Tesla's Bitcoin profits, expectations are high for blockbuster earnings set to be released after the market closes on Oct 19.

"We think Q3 will be TSLA's strongest quarter ever," said Piper Sandler analyst Alexander Potter.

Will other companies follow?

Thus far, Tesla's Bitcoin strategy has been very successful, providing a case study of how other corporates could replace a portion of their cash reserves with BTC.

That said, several companies that invested in Bitcoin before Tesla, have seen even greater gains.

For instance, business intelligence firm MicroStrategy purchased around $3.15 billion worth of Bitcoin in multiple buying rounds. With its first purchase dating backing to Aug. 11, 2020, the company's net Bitcoin profits are now near $6.3 billion, almost doubling its investment.

Jack Dorsey's payment service firm Square also seen considerable gains from holding Bitcoin, now worth over $442 million from its $220 million investment.

Additionally, Canada-based crypto mining firm, Hut 8 Mining Corp, has seen its $39.3 million Bitcoin purchase increase in value by more than 600%, reaching around $250 million. Back in June, the company also revealed plans to hold 5,000 BTC by 2022.

Bitcoin slides with S&P 500 as Fed signals tapering $120B monthly bond purchases

August 19, 2021 Coin Telegraph

Bitcoin

The benchmark cryptocurrency retreated alongside risk-on markets as investors shifted their exposure to the U.S. dollar.

Bitcoin (BTC) prices briefly fell below $44,000 on Thursday as the United States Dollar strengthened after the U.S. Federal Reserve policy minutes revealed its intentions to limit its bond-purchasing program this year.

Bitcoin risks $45,000 becoming new resistance

The spot BTC/USD rate dropped 1.71% to a new week-to-date low of $43,955. The pair’s plunge appeared as a part of a technical correction that started after it had reached a three-month high of $48,176 on Saturday, following a 64.42% price rally.

*Bitcoin daily price chart. Source: TradingView*

Bitcoin’s latest price decline also surfaced in line with a similar market bias on Wall Street. For instance, the benchmark S&P 500 index lost 47.81 points, or 1.1%, dropping to 4,400.27 during Wednesday’s final hours of trading.

Similarly, the Dow Jones and the Nasdaq Composite also plunged 1.1% and 0.9%, respectively. In addition, CNBC’s pre-market data revealed that futures tied to Wall Street indexes dropped on Thursday, hinting that the markets will likely continue their declines after the New York opening bell later on Thursday.

Over the past month, #Bitcoin and the #SP500 have been correlating quite strongly, and that includes the mild decline over the past couple of days. Meanwhile, the inverse correlation between $BTC and #gold's price has calmed down significantly. https://t.co/dvQUHVrYEH pic.twitter.com/lpwJBvkpbx
— Santiment (@santimentfeed) August 19, 2021

On the other hand, the U.S. dollar index (DXY) benefited from declining risky markets. The index, which measures the greenback’s strength against a basket of top foreign currencies, surged 0.39% to a six-month high of 93.50 before correcting lower by modest margins.

*U.S. dollar index daily chart highlighting an inverse head and shoulder setup. Source: TradingView*

Tapering alert

The U.S. Federal Reserve’s July 27–28 meeting, released Wednesday, showed an emerging consensus to unwind its $120-billion monthly purchases of Treasury and mortgage-backed securities.

Most central bank officials agreed that the U.S. economic recovery is on the right path, which is an appropriate reason to reduce the pace of asset purchases. But they did not reveal when they should begin the tapering, with only three remaining Federal Open Market Committee meetings left to attend this year.

Officials also agreed that scaling back asset purchases would position them to raise interest rates should the economic recovery persist as anticipated. But they said that they want to see stronger evidence that the labor market has recovered from the aftermaths of the COVID-19 pandemic, the minutes revealed.

On inflation, the minutes showed Fed officials anticipating a temporary burst. They highlighted that their preferred gauge of inflation, after excluding volatile food and energy categories, was at 3.5% in June — a 30-year high — but anticipated declines by calling the upswing in consumer prices transitory.

Bullish exhaustion ahead?

In detail, excessive bond-buying ended up sending U.S. debt yields to a low of 0.66% in 2020. Even the bounce back recorded at the beginning of 2021 kept the yields near their record lows. The trend was the same across the globe, wherein the amount of debt offering negative yields recently stood at $16.5 trillion, a six-month peak.

*Long-term government bond yields are declining across developed economies. Source: FRED*

The lower rate of returns has sparked a series of rotations in the equity market, with indexes logging record highs. The S&P 500 rallied 19.01% year-to-date to hit a lifetime peak of 4,480.26 points, while the Dow Jones jumped 16.30% year-to-date to reach an all-time high of 35,369.87 points.

Bitcoin, which emerged as a safe-haven alternative to the U.S. dollar and gold in 2020, also rose alongside the Wall Street index. In 2021, it has penned a record high near $65,000, with analysts crediting the Fed’s loose monetary policies as one of the leading catalysts behind its price rally.

The biggest helpers for cryptocurrency adoption are central banks. #Bitcoin rises almost in tandem w/the combined balance sheet of the Big3. Combined balance sheet of Fed, BoJ and ECB has risen to almost $25tn. pic.twitter.com/TB8FqeSIqd
— Holger Zschaepitz (@Schuldensuehner) August 13, 2021

But the biggest question remains of whether or not tapering will rotate capital out of the markets, which boomed during the period of quantitative easing, especially now Bitcoin that is sitting atop over 1,000% in profits following the Fed’s loose policy introduction in March 2020.

Jon Ovadia, founder of South Africa-based crypto exchange Ovex, noted that a declining cash flow from the Fed’s coffers would likely halt the growth of Bitcoin and similar risky assets in the near term.

“The factors that support the growth of Bitcoin, in particular, goes beyond just the Fed’s interference in keeping the economy healthy,” he explained, adding:

“However, on the macroeconomic front, Bitcoin investors will have to factor in the prospective impact and hang on to other fundamentals that abound in the crypto market to keep prices at record levels.”

Bitcoin will have refreshed record highs by Q1/2022

James Wo, founder and CEO of Digital Finance Group, called the latest price declines in Bitcoin and the equity market “reactionary” in nature. But he stressed that risk-on assets would continue their upward momentum in the long term due to inflationary pressures.

“Nominal inflation will take time to get back to levels seen before the pandemic,” he said.

“I continue to believe that we are still on track to reach all-time highs by Q4 2021–Q1 2022.”

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