Despite a dismal opening on Wall Street where the S&P500 is losing 1.9% and the NASDAQ more than 2.6%, cryptocurrencies are acting moderately calm. The open question remains whether this is the quiet before the weekend storm?
- Bitcoin is holding near $19,500, Ethereum is trading almost flat at $1,340 despite declines in the US stock market. Before the NFP reading, which was weighing on stock market bulls, investors were paying $1,350 for Ethereum, so a drop of $10 is not impressive. At the same time, AMD and Nvidia shares are diving by more than 6%;
- Binance's affiliated cryptocurrency exchange, Binance Smart Chain was attacked, with hackers stealing nearly $100 million worth of BinanceCoin BNB cryptocurrencies, of which $7 million has already been frozen. According to Bloomberg estimates, hackers have already stolen a total of $2 billion in cryptocurrencies this year, supposedly by groups linked to North Korea;
- The week's close could be a nervous one, and as a general rule, the volatility of indices is not conducive to cryptocurrencies. Stock investors were spooked by the strong NFP report, which favors the Fed's tight monetary policy, but the moderate panic in the cryptocurrency market offers hope and could be a contrarian buy signal.
Bitcoin, H1 interval. The price of the major cryptocurrency has settled below $19,6000 and is struggling to stay above the SMA 200. A close above $20,000 in today's session could herald a 'successful weekend' for the digital asset, however, the potential for downward movement still seems just as likely. It can be seen that the market is interpreting current events in a similar way - hence we are experiencing a consolidation in which neither side is convinced of a major move in either direction. Historically, however, such moments have not lasted very long, so extrapolating we can expect an upcoming spike in volatility in the Bitcoin market. Given that Bitcoin has repeatedly surprised investors and eluded forecasts, a renewed climb above $20,000 should not surprise markets. Source: xStation5
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