ended a 9-week bearish streak and closed the week ending June 5 candle in the green.

Chart / weekly. Source: TradingView

Fear of US economic recession

Inflation is the biggest obstacle to the recovery of the US economy. But rising interest rates could also lead to an economic recession.

Concerns about whether the US economy will fall into a recession are having a big impact on markets. The administration of US President Joe Biden could also be at risk by this risk.

The slowing economy also poses challenges for companies and workers. There are 3 indicators showing that the growth momentum of the world's leading economy is decreasing.

First, the US May jobs report released on June 3 indicated that the labor market had added 390,000 jobs. That was higher than expected, but still down from an increase of 428,000 positions in April.

Second is the housing market. Borrowing costs have skyrocketed as the US Federal Reserve (Fed) begins to raise interest rates to curb inflation.

Last week, interest rates on 30-year fixed-rate mortgages averaged 5,09%, up from 2,99% in the same period last year. That causes many potential customers to leave the market, reducing demand.

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Available home sales in the US in April recorded a third consecutive month of decline.

In addition, according to the latest Fed survey, all 12 regions recorded positive growth, but the impact of tightening financial conditions has become clear.

Accordingly, consumer demand declines because of escalating prices. The real estate market is also negatively impacted by high prices and rising interest rates.

Bitcoin and altcoins go green

has remained trading in a tight range throughout the week, which has been in place since recovering from a low of $23,800 in May.

Joe DiPasquale, CEO of the fund management company BitBull, wrote:

"BTC remains weak until it clears out of the $31,000-32,000 range. However, we continue to see some buying below $ 30K holding the price.”

Santa noted that US inflation data will be released in the coming days – in the form of the consumer price index (CPI) for May, which could cause volatility if inflation is proven to be in excess. expectations are already high.

Jeffrey Rosenberg, senior portfolio manager of multisystem strategy at asset management giant BlackRock, said:

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“The panel has yet to determine the trajectory of inflation. The Fed will continue to focus on the number one priority of reducing inflation until that actually happens. Until then, all markets are very tough.”

April CPI stood at 8.3%, plus inflation has been at levels not seen since the early 1980s.

While many people predict that will eventually return to the May lows, a group of traders remain clearly bullish.

On the major exchange Bitfinex, long bets on BTC continued to rally into the weekend, hitting new record highs and causing confusion among analysts.

The markedly rapid uptrend following the trip to $23,800, led to concerns that a liquidation event could add to the volatility of the market should BTC reverse downhill.

“This will either lead to a great pump…or a liquidation disaster,” Kevin Svenson tweeted on June 2.

Image

The source: Twitter

Ether, copper the second-largest by market capitalization, recently changed hands above $1,800, up slightly year-on-year and in a range held for the past two weeks below $2,000. Nevertheless, closed the 9th weekly red candle in a row, which is a negative signal for the price.

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/. Source: TradingView

Other major cryptocurrencies are all inching up, with THETA and are two of the biggest winners raising 11% and 10% respectively. 

The source: Coin360

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