{"id":14534,"date":"2022-10-17T15:20:14","date_gmt":"2022-10-17T15:20:14","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-price-edges-closer-to-20k-as-way-worse-us-data-boosts-stocks\/"},"modified":"2022-10-17T15:20:16","modified_gmt":"2022-10-17T15:20:16","slug":"bitcoin-price-edges-closer-to-20k-as-way-worse-us-data-boosts-stocks","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-price-edges-closer-to-20k-as-way-worse-us-data-boosts-stocks\/","title":{"rendered":"Bitcoin price edges closer to $20K as ‘way worse’ US data boosts stocks"},"content":{"rendered":"
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Bitcoin (BTC) headed toward $20,000 as United States equities gained at the Oct. 17 Wall Street open.<\/p>\n

BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n

Stocks climb as U.S. dollar heads lower<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView showed BTC\/USD reaching $19,672 on Bitstamp, up 3.5% versus the weekend\u2019s lows.<\/p>\n

The pair rose in line with stocks, with the S&P 500 and Nasdaq Composite Index gaining 2.7% and 3.2%, respectively within thirty minutes\u2019 trading.<\/p>\n

The action combined with weak U.S. economic data in the form of the Empire State Manufacturing Index, which fell to -9.1 for October, heavily below the forecast -4.3 and September\u2019s -1.5 reading.<\/p>\n

\u201cManufacturing activity declined in New York State, according to the October survey,\u201d the New York Federal Reserve summarized in commentary on the data. <\/p>\n

\u201cThe general business conditions index fell eight points to -9.1. Twenty-three percent of respondents reported that conditions had improved over the month, and thirty-two percent reported that conditions had worsened.\u201d<\/p><\/blockquote>\n

Responding, Micha\u00ebl van de Poppe, founder and CEO of trading firm Eight, called the results \u201cway worse than expected.\u201d<\/p>\n

\u201cTop on Yields & $DXY on the horizon. Bitcoin to rally,\u201d he predicted<\/a>.<\/p>\n

With that, the U.S. dollar index (DXY) continued retracing recent gains on the day, targeting 112 and down 0.65%.<\/p>\n

\u201cRisk asset deflation in 2022 and Fed tightening despite the world leaning toward recession portend an elusive end game,\u201d Mike McGlone, senior commodity strategist at Bloomberg Intelligence, wrote<\/a> while summarizing fresh macro analysis.<\/p>\n

\u201cThe lower-price cure may be necessary in commodities to curtail Fed restraint and plunging money supply. Cooling crude oil may be refuel Bitcoin and gold.\u201d<\/p><\/blockquote>\n

U.S. dollar index (DXY) 1-day candle chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

Research reinforces impending volatility<\/h2>\n

While traders were already predicting some relief to hit crypto markets on weekly timeframes, other perspectives reiterated<\/a> the fact that long term, nothing had changed for Bitcoin for many months.<\/p>\n

Related:\u00a0\u2018Get ready\u2019 for BTC volatility \u2014 5 things to know in Bitcoin this week<\/em><\/strong><\/p>\n

\u201cIt is very uncommon for BTC markets to reach periods of such low realized volatility, with almost all prior instances preceding a highly volatile move,\u201d on-chain analytics firm Glassnode showed in the latest edition of its weekly newsletter, The Week On-Chain.<\/p>\n

Alongside a chart of Bitcoin\u2019s realized volatility, researchers including lead analyst Checkmate argued that the market had reached a pivotal point. <\/p>\n

\u201cHistorical examples with 1-week rolling volatility below the current value of 28% in a bear market have preceded significant price moves in both directions,\u201d they continued.<\/p>\n

Bitcoin 1-week realized volatility chart (screenshot). Source: Glassnode<\/em><\/figcaption><\/figure>\n

Concluding, Glassnode acknowledged that despite the fuel for a potential price breakout being there, for example in BTC-denominated futures open interest hitting new all-time highs, there was “little discernible directional bias in futures markets.”<\/p>\n

“Volatility is likely on the horizon, and Bitcoin prices are not known to sit still for very long,” the newsletter stated.<\/p>\n

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<\/div>\n