Bitcoin has quickly recovered its losses and is racking up double digits to a monthly high of $21,597 as of early this morning.
US stocks rallied on Friday as Wall Street closed a strong week, recovering from a decline caused by the US Federal Reserve (Fed).
Ending the session, the Dow Jones advanced 1,19% to 32,151 points. The S&P 500 added 1,53% to 4,067 and the Nasdaq Composite added 2,11% to 12,112.
All three major indexes ended a three-week losing streak. The Dow Jones gained 2,66% over the past week, while the S&P 500 added 3,65%. Nasdaq Composite jumped 4,14% for the week.
U.S. stocks have been volatile lately as expectations of a further 0.75 percentage point rate hike this month rose on Wall Street, after Fed Chairman Jerome Powell reiterated that he was "strongly committed." will reduce inflation.
“The case for the ongoing bear market is that the Fed will continue to tighten monetary policy, reducing market liquidity and causing trouble for equities,” said David Donabedian, chief investment officer at CIBC Private Wealth. US, comments. “However, the market rally this week suggests that the economy is likely to continue to recover on the back of positive economic reports.”
However, Mr. Donabedian added that he doesn't think the stock has hit a bear market.
Oil prices rose more than 3% on Friday, supported by reality and threats of supply cuts, although futures contracts closed for a second straight week of losses as drastic interest rate hikes and the The Covid-19 lockdown in China has put pressure on the demand outlook.
Russian President Vladimir Putin has threatened to halt oil and gas exports to Europe if a price ceiling is imposed, and the small OPEC+ production cuts announced this week also supported prices.
Ending the session, Brent oil contract advanced 3.7% to 92.45 USD/barrel. WTI oil contract added 3.7% to 86.65 USD/barrel.
Pressured by recession and demand concerns, Brent has plummeted from its March gains to an all-time high of $147 a barrel in the wake of the Russia-Ukraine conflict.
Gold prices rose on the same day as the dollar temporarily weakened, thereby easing some of the pressure on the precious metal from the prospect of stronger interest rate hikes.
At the end of the session, the spot gold contract advanced 0.5% to 1,716 USD/oz, after rising to the highest level since August 30 at the beginning of the session. Gold futures added 0.4% to $1,727 an ounce. Gold has gained 0.3% over the past week, marking its first weekly gain in four weeks.
Jim Wyckoff, Senior Analyst at Kitco Metals, commented:
“The USD index really dropped overnight and that supported the gold market. Also noticed some short-covering activity in the futures market over the weekend.”
The dollar has fallen to its lowest level in more than a week, making gold less expensive for foreign buyers.
Bitcoin and altcoins
Amount of holdings Bitcoin of each whale has decreased even though the price BTC get a raise. Analysts believe that the probability of a bullish trend recovery of Bitcoin is low in the short term. The asset hit a September high early this morning amid speculation about the Federal Reserve's decision.
Supply Bitcoin of large investors fell to the lowest level since December 2020. Usually, when big investors hold Bitcoin or buy BTC on exchanges, it will spur a rally in the asset. Conversely, decreased holdings signal an increase in BTC reserves on exchanges, leading to increased selling pressure on the asset.
Despite the reduced supply held by whales, the Bitcoin price is still up double digits.
The Federal Reserve could quickly pause or reverse its tightening measures on the US economy as the country slips into a recession. This can lead to higher capital inflows into Bitcoin, increased demand for the asset, and an increase in price.
Analyst Crypto Wolf believes that Bitcoin has bottomed out. The last parameter that needs to be met is a crossover on the weekly MACD histogram and is the third confirmation of the asset's rally. This marks a three-month long accumulation period. Investors who bought Bitcoin in the last 90 days are likely to profit from the asset.
Toward altcoin, after the August accident pushed ETH down to $1.424, cryptocurrency The second largest has started to recover and over the past two weeks the price is up nearly 20% to trade at $1,725 at press time.
ETH is currently breaking through a long-standing resistance block and if altcoin If this range can manage to turn this range into support, it will approach the 38.2% Fibonacci level, which is the first sign of a rebound.
The rest of the altcoins in the top 100 are also jumping on the heels of Bitcoin. Most of them are in the green while only 2 coins have declined, LUNC (-14%) and LUNC (-14%). HNT (-0,6%).
Leading the current uptrend is LUNA – currently rallied 166% after sudden breakout of 300% . It is still unclear what motivates the sudden increase in LUNA but it helped the altcoin record weekly gains of up to 181% after hitting a high around $7.68.
Next is RVN which is recording an advance of more than 48% on the day. The rest of altcoins are recording gains knife dynamic between 1-18% during the same time period.
Investor sentiment has stepped out of the extreme fear zone and is currently in the fear zone with the greed and fear index at 28 at press time.