Bitcoin's stimulated rise fades as stocks fall, dollar rises Freebitcoinus.xyz

 Bitcoin's stimulated rise fades as stocks fall, dollar rises Freebitcoinus.xyz

Bitcoin has crippled Sunday's gains as stock markets struggle to support progress in U.S. fiscal stimulus efforts.

According to data from CoinDesk 20, the cryptocurrency is changing hands at just over $ 50,150 at press time, representing a 1.55% drop on the day. Prices jumped from about $ 49,000 to $ 51,800 on Sunday when the US Senate approved President Joe Biden's $ 1.9 trillion economic stimulus plan. The bill is now being sent back to the House for approval.


Traditional markets were controversial early in the day today, with the US dollar falling against major fiat currencies, Asian equities and US stock futures, which initially showed moderate gains. However, with the yield on 10-year US bonds remaining elevated around the 12-month highs reached on Friday, the dollar soon regained ground, leading to a drop in Asian equities and bitcoins (BTC, + 0.26%).

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The 10-year yield is currently trading just below Friday's high of 1.62%. S&P 500 futures are currently losing money, while futures linked to the high-tech Nasdaq index fell nearly 2%.

The stimulus was expected to put upward pressure on yields and limit progress on risky assets. Hence, Bitcoin's inability to gain a foothold at around $ 52,000 is not a surprise.

The cryptocurrency has faced rejection of around $ 52,000 three times this month, making it a bullish level. However, the breakout could remain elusive if yields continue to rise, weakening Bitcoin's appeal as a hedge against inflation.

In addition, developments in the Chinese stock market could be a key driver of Bitcoin price movements, trader and analyst Alex Kruger told CoinDesk on Telegram.

The Shanghai Composite Index fell more than 2% today, while the FTSE China A50 Index fell nearly 4%. The former is down 14% from its February peak, and the S&P 500 is down less than 5% from its all-time high in mid-February.

While the exact reason for the big drop in Chinese stocks is unknown, it could be a harbinger of things to come amid growing concerns about an early end to stimulus from the Federal Reserve. According to Gary Biddle, professor of financial accounting at the University of Melbourne, the stock market is crumbling after the last gasp of the bulls.

With the end of monetary easing approaching, this is a real chicken game as investors see how close they can get to an imminent recession,Biddle said in an article for the South China Morning Post.

It remains to be seen if the Chinese stock market will drive down its global competitors and bitcoins. Crypto options market data shows that some investors are starting to position themselves for deeper drawdowns. Quotes are bought today,Swiss data analysis platform Laevitas told CoinDesk.

Bitcoin's stimulated rise fades as stocks fall, dollar rises Freebitcoinus.xyz

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