Call toll-free 800.328.1267
[showmodule id=”58959″]
This post is a translation of the weekly cryptocurrency analysis by Block Insight, a wholly owned subsidiary of Monex Group (Tokyo, Japan). Monex is the parent of TradeStation Group.
Bitcoin (BTC) rose 10% this week after a $2 trillion stimulus package was announced by the Trump administration. Both equity and cryptocurrencies rose sharply as support for the bill saw overwhelming sentiment from both sides of the political aisle. BTC and gold (@gc) started gaining momentum to the upside on Monday when the Federal Reserve announced it would purchase an unlimited amount of Treasurys and mortgage-backed securities to support the financial market.
The hash rate, a key measure of competition among BTC miners, stagnated. The stagnation in the hash rate likely was due to a slowdown global economic activity due to the Corona Virus. BTC prices did not seem to be too affected by this news.
Though BTC rose strongly on the week, volatility contracted. BTC formed an inside week (a phenomenon that occurs when the entire range is encapsulated within the previous week’s range). A price pause like this at a large area of resistance is not uncommon to see.
Sentiment in cryptocurrencies has turned for the better as global equities markets have stabilized following a worldwide effort by governments to stabilize their economies. After weeks of erratic price action, volatility in Bitcoin (BTC) subsided.
One possible catalyst for further upside in cryptocurrencies would be a stabilization of the hash rate. The hash rate, which has dropped 45% since the 2020 peak, is the measure of calculations that a given network can perform each second. If cryptocurrency miners can see larger profits again and the network stabilizes, investors will likely feel more confident purchasing crypto.
Bitcoin has existed as a digital asset for 15 years. This week, it took a big step toward mainstream finance when the first exchange-traded products launched in the United States. The U.S. Securities and Exchange Commission (SEC) approved 11 exchange-traded funds...
Cryptocurrencies like Bitcoin tumbled in the last year as the Federal Reserve hiked interest rates, but now spirits could be improving. The Crypto Fear & Greed Index, which includes factors like Volatility and Momentum, hit 61 on Monday. It was the highest reading...
Cryptocurrencies have been sitting quietly for most of the year as investors digest potential positives like Ethereum's pending upgrade and more institutional adoption. Bitcoin and Ethereum, the two biggest digital assets, are little changed since the first week of...