Bitcoin managed to close the previous week in green as a slightly optimistic economic data in the US lifted demand for the US dollar.
The cryptocurrency and the greenback have trended inversely to one another since the March 2020’s global market crash. They continue to serve as counter-indicators to one another, a sentiment that has grown further because of the ongoing stimulus negotiations and the upcoming US presidential election on November 3.
Last week, investors’ focus, however, shifted on the US corporate earnings, retail data, and factor production statistics. A majority of them came out as uplifting. More than 80 percent of S&P 500 companies that released their financial reports beat analysts’ forecasts.
The factory production fell, on the other hand, in September for the first time in five months. That suggested a slowdown in the US economic recovery.
BITCOIN THIS WEEK
Bitcoin waited for the weekend to log a rebound after closing the five-day week on Friday in losses. That was in line with the US dollar index, which during the Monday-Friday trading session, surged 0.75 percent.
That was partially due to the mixed economic data. Traders continued to place money in the US dollar over uncertainty, thereby reducing bids on rival safe-haven assets like gold and Bitcoin.
An expected rise in unemployment, specifically, could push the demand for the US dollar higher.
So in the latter half of this week, traders may attempt to push the Bitcoin prices lower. Meanwhile, Mr. Powell’s speech today would likely see him reiterating his concerns about the delayed stimulus aid for American households and businesses.