Macro cools after intense week
With U.S. markets closed for the Martin Luther King Jr. holiday on June 19, macro catalysts for crypto markets wait until later in the week.
While not as numerous or significant as the previous week’s set, these still have the potential to spark some surprise volatility.
The Federal Reserve is among them, with Chair Jerome Powell due to testify before Congress over two days from June 21.
After the Fed’s recent decision to pause interest rate hikes but leave the door open to resume them later, markets will be keenly analyzing Powell’s language for hints about what might come next.
To cap off the week, June 22 will see the release of Purchasing Managers’ Index (PMI) data.
Among market participants, meanwhile, the focus is equally on Bitcoin’s correlation to traditional risk assets as it is on how macro triggers impact them.
“Not only has $BTC lost the positive correlation w/SPX and NDX, but we’ve also lost the inverse corr w/DXY,” trader Josh Olszewicz noted last week, referencing Bitcoin’s interaction with the S&P 500, Nasdaq and U.S. Dollar Index, respectively.
Credible Crypto suggested that the recent disparity between BTC and SPX performance — sideways versus what various source have called a “bull market rally” — may yet resolve in bulls’ favor.
While not as numerous or significant as the previous week’s set, these still have the potential to spark some surprise volatility.
The Federal Reserve is among them, with Chair Jerome Powell due to testify before Congress over two days from June 21.
After the Fed’s recent decision to pause interest rate hikes but leave the door open to resume them later, markets will be keenly analyzing Powell’s language for hints about what might come next.
To cap off the week, June 22 will see the release of Purchasing Managers’ Index (PMI) data.
Among market participants, meanwhile, the focus is equally on Bitcoin’s correlation to traditional risk assets as it is on how macro triggers impact them.
“Not only has $BTC lost the positive correlation w/SPX and NDX, but we’ve also lost the inverse corr w/DXY,” trader Josh Olszewicz noted last week, referencing Bitcoin’s interaction with the S&P 500, Nasdaq and U.S. Dollar Index, respectively.
Credible Crypto suggested that the recent disparity between BTC and SPX performance — sideways versus what various source have called a “bull market rally” — may yet resolve in bulls’ favor.
Cointelegraph has often reported on the ups and downs of Bitcoin’s macro correlations in recent years. A notable theme post-2020 has been a strength during periods of Fed liquidity injections and vice versa. $Bitcoin (BTC.CC)$ $Ethereum (ETH.CC)$ $S&P 500 Index (.SPX.US)$ $SPDR S&P 500 ETF (SPY.US)$
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MoneyComesMoneyStays : MLK holiday is in January. If you can't even get that right which would take a 5 second Google search why should anyone care what you say at all?