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Bitcoin Climbs Closer to $20K After More Bad Economic Data

After the Empire State Manufacturing Index October numbers fell far short of expectations, there is a relief bounce on risk assets. Bitcoin surged to $20,000...
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After the Empire State Manufacturing Index October numbers fell far short of expectations, there is a relief bounce on risk assets. Bitcoin surged to $20,000 after the October 17 Wall Street Open. Stocks rise as the U.S. dollar falls.

Data from Cointelegraph Markets Pro, TradingView indicated that BTC/USD reached $19,672 via Bitstamp. This is 3.5% higher than the weekend’s lows.

The pair rose in line with stocks with the S&P 500 Index and Nasdaq Composite Index both increasing 2.7% and 3.2% respectively within 30 minutes of trading.

This action was combined with weak U.S. data, such as the Empire State Manufacturing Index, that fell to -9.1 in October. The reading is significantly below the forecast -4.3 and September’s reading of -1.5.

Manufacturing activity decreased in New York State according to the October Survey,” New York Federal Reserve stated in commentary.

“The general business condition index dropped eight points to 9.1. Twenty-three percent reported conditions improving over the past month while thirty-two percent reported worsening conditions.

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Michael van de Poppe (founder and CEO of Eight trading company) responded by calling the results “way more disappointing than expected.”

On the horizon are top yields and DXY. He predicted that Bitcoin would rally.

The U.S. Dollar Index (DXY), which was tracking 112 and 0.65%, continued to retrace its gains from the previous day.

According to Bloomberg Intelligence, Mike McGlone (senior commodity strategist), “Risk asset inflation in 2022 and Fed tightening, despite the world heading toward recession, portend an elusive end game.

“The lower price cure in commodities may be required to curb Fed restraints and plummeting money supply.” The cooling of crude oil could be used to refuel Bitcoin or gold.

Research reinforces impending volatility

Although traders had already predicted some relief for crypto markets in the weekly timeframes of January, other perspectives emphasized that nothing has changed long-term for Bitcoin.

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Glassnode concluded that, despite potential price breakouts in BTC-denominated forwards open interest reaching record all-time highs and other indicators, there was barely discernible directional bias within futures markets.

The newsletter stated that volatility is possible and Bitcoin prices will not be stable for long.

“It’s very rare for BTC markets to reach periods of such low realized volatility with almost all previous instances preceding a high volatile move,” Glassnode , an on-chain analytics firm, stated in its latest edition of The Week On-Chain.

Researchers including Checkmate, the lead analyst, argued that the market has reached a crucial point.

They continued, “Historical examples of 1-week rolling volatility lower than 28% in bear markets have preceded significant price movements in both directions.

Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".
Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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