(Bloomberg) — Bitcoin and Ether pared losses, after falling earlier on Sunday amid a broader retreat by the cryptocurrency complex in the wake of data showing US inflation hitting a fresh 40-year high.
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Ether declined as much as 6.4% to $1,424.40, its lowest level since March 2021, while Bitcoin dropped to as low as $26,876.51, its lowest since May 12. Virtually all top tokens tracked by Bloomberg were down Sunday, with the likes of Dogecoin and Avalanche falling as much as 9.4% and 13% respectively. But they then showed some signs of life, rallying off their lows as of 11:45 a.m. Sunday in New York — and Ether even briefly made its way back to positive territory for the day.
US inflation data Friday topped expectations, dashing any hopes that rising prices may have peaked. Stocks sank while two-year Treasury yields climbed to the highest since 2008. Bitcoin and other cryptocurrencies have suffered in recent months as the Federal Reserve hikes rates and global policy makers step up efforts to combat price increases, and as risk assets like tech stocks retreat.
The inflation data is helping fuel the downward action and “very likely we see this bearishness continue on to the next week especially with the FOMC meeting coming up,” said Vijay Ayyar, vice president of corporate development and international at crypto platform Luno.
“If one looks at previous bear markets, Bitcoin has declined around 80%-plus normally, with altcoins typically doing 90%-plus,” said Ayyar. “If that remains the case, we could see much lower Bitcoin prices over the next month or two.”
Some analysts have said that if Bitcoin got below the high-$20,000s level, it might gap down quickly, with levels like the 200-week moving average near $22,000 and even the 2017 high at $19,511.
Total long crypto liquidations were above $100 million for a third straight day on Sunday, after $258 million on Friday and $290 million on Saturday, according to data from Coinglass. And the MVIS CryptoCompare Digital Assets 100 index, a market cap-weighted measure tracking the performance of the 100 largest tokens, fell to the lowest level since January 2021.
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Gold prices climb on Thursday, looking to snap a seven-day losing streak — the longest string of losses for the yellow metal in more than three years.
U.S. stock benchmarks rose as the number of Americans applying for jobless benefits inched higher and investors bet on a larger interest-rate increase from the Federal Reserve this month.
The tech-heavy Nasdaq Composite Index is leading the three major U.S. stock indexes higher on Thursday.
Gold investors face a “challenging” market environment in second half of the year after an essentially flat performance for the precious metal in first six months of 2022, the World Gold Council said in its mid-year outlook report released Thursday.
Oil futures climb sharply on Thursday after a two-day rout that sent the U.S. benchmark below $100 a barrel and into a bear market.
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The Dow Jones fell despite Apple stock rising. Tesla stock rose despite disappointing delivery data. A Warren Buffett stock fell.
Gold rose on Thursday as a pause in the dollar's rally encouraged some investors to snap up bargains after two sessions of heavy losses that sent prices to a nine-month low. Spot gold was up 0.5% at $1,747.7 per ounce by 10:14 a.m. ET (1414 GMT). "Any strength we might see in gold in the short term must be treated with extra care as the selling could easily resume amid an environment of strong US dollar and rising interest rates," said Fawad Razaqzada, market analyst at City Index.
Concerns about a recession and a drop in energy demand led to a drop in U.S. benchmark West Texas Intermediate crude-oil prices below the $100 -a-barrel mark on Tuesday for the first time in months. That's contributed to talk of a potential "buying opportunity" for traders, even as some analysts expect further price declines.
Technical indicators in recent trade for both gold and silver are now "fully bearish," says Kitco.com's Jim Wyckoff.
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The Indian central bank's moves to liberalise foreign exchange inflows are unlikely to offer much immediate support to the floundering rupee as inflation pushes higher and the current account deficit threatens to balloon towards multi-year highs. The Reserve Bank of India announced a slew of measures on Wednesday to bring in a fistful of dollars, including allowing overseas investors to buy short-term corporate debt and opening of more government securities under the fully accessible route. The steps came after the RBI's foreign exchange reserves fell by more than $40 billion over the past nine months, largely due to its intervention in the currency market to curb rupee losses.
Apple and other techs led a big rally off morning lows as oil prices and bond yields dived. Markets see Fed rate hikes ending this year.
Asian shares were mostly lower Wednesday after tepid trading on Wall Street amid worries about a global recession.
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Hints of a rate hike pause, buried deep in yesterday's Fed minutes, could lift U.S. stocks to a fourth consecutive session of modest gains.
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