Bitcoin Bulls Wear Off with Immense Pressure from China

The recent “death cross” on Bitcoin’s daily and hourly charts weakened price stability as Bitcoin miners continue to face immense pressure from China in the wake of deadly coal accidents, further weakened Bitcoin bulls resolve to break above $38,000.

Price patterns reveal Bitcoin has lost about 13% in the past seven days.

High price swings currently in play at the pioneer crypto market makes it a magnet for intraday trading professionals who are able to monetize price swings in either direction, further suggest prices might continue to range in the coming days.

Though price patterns reveal long-term investors are considerably holding on the desirable store of value asset, the growing activity of retail investors has made market reactions choppy and consolidating in principle.

Additionally, trading activity in Bitcoin’s futures has dropped drastically, particularly relative to the $120 Billion in trading volumes that occurred during the capitulation event last month.

Although data from Glassnode, a crypto analytic firm that shows about $15 Billion in additional trading volumes came to play following the vote in El Salvador, the first country to adopt Bitcoin has a legal tender, hence current trading data expose volumes are tanking once again.

This is largely attributed to confusing signals, with a number of investors and crypto traders unsure about the macro market direction at Bitcoin‘s derivatives markets are unsure on the crypto market direction and thus keeping leverage levels significantly low.

Despite these mixed signals, it’s important to note long-term investors using the net monthly rate of Bitcoins maturing across the 155-day threshold, reveal a very large volume of Bitcoins were bought in the early bull phase, and have remained largely unsold.

Oil Bulls Reign, on Iranian Hard-Line Leader’s Victory

Oil bulls affirmed their grip on the energy market after macros showed a substantial pause on the resumption of supplies from Iran who sits upon 13% of global oil reserves.

At the time of filing this report, the British based oil contract, Brent crude futures posted gains of about 0.4% to trade near $74 a barrel while U.S. West Texas Intermediate futures traded near $72 a barrel, posting gains of about 0.5%.

Both major crude oil benchmarks have recorded four straight weekly gains amid soaring demand, continued supply controls by OPEC+ and U.S. shale producers suggest crude oil use is recovering fast, and nearly at pre-COVID-19 pandemic levels.

Negotiations to resuscitate the Iran nuclear deal went tough on Sunday, as macros revealed Ebrahim Raisi, a hardliner, placed on U.S sanctions won the Iranian presidential election, further added more complexity amid reports on the removal of such sanctions imposed on its leader before any agreement is reached.

Price patterns show oil bulls had earlier been under intense pressure in the early part of 2021 amid reports that a nuclear deal was imminent and Iranian oil would soon flood the fragile oil market with the third wave of COVID-19 hitting hard at key oil buyers like India and Japan.

Still, market pundits predict, pending crude oil supplies from Iran can easily be absorbed by the growing thirst for energy as social mobility and air travels rebound strongly on growing sentiments that energy demand will outstrip supply by as much as 1.5 million barrels a day by the end of this year.

U.S Dollar Propels High on a Hawkish Federal Reserve Bank

Although the Federal Reserve Bank left the rate unchanged on Wednesday, its most recent statement on progress and strong policy support, indicators of economic activity and employment levels improving, affirmed it was just a matter of time, the U.S central bank will tighten its monetary supply amid growing concerns over growing inflation.

Additionally, FOMC members moving up the timeline for rate hikes, pushing the value of the U.S dollar index used in tracking the greenback’s strength against six major currencies to its highest level since early May, triggering selling pressures on risker assets like Bitcoin, precious metals at Wednesday trading session.

Currency traders were stunned at the sudden hawkish narrative of the Federal Reserve Bank as many believed Jerome Powell led monetary team will maintain its longstanding view that inflation is transitory meaning it would maintain a dovish tone, however with such change dollar bears dropped back to the bench as the U.S central bank upgraded estimates for inflation.

Weighing hard on the mind of Dollar bears is Jerome Powell assertion that pointed monetary officials had begun a discussion about tapering bond purchases, with such declaration showing the economic outlook of the $21 trillion plus economy remains relatively strong, further giving DXY bulls enough gas to stay above 91.3 index points, though the lingering threat of virus variants and the Fed’s chief insistence that the actual commencement of any policy normalization was still far off.

Market pundits further anticipate that such a change in narrative with 13 of 18 monetary officials favouring at least one rate increase by the end of 2023, versus seven in Q1, suggesting the Fed might pull the brakes on its quantitative easing programs sooner than later in order to prevent the world’s biggest economy from overheating, arbitrarily weakened buying pressures at global stock markets for the near term.

NFTs are Fast Becoming a Wildfire in the Crypto Community

NFTs are a form of a Crypto asset like bitcoin, only that they contain real assets like art and music and possess no tangible form of their own.

Consequently, because these tokens are non-fungible, it further means they have unique properties so it cannot be interchanged with something else.

Most NFTS are Ethereum-based tokens though a growing number of these tokens adopt the Solana, Binance Smart Chain Blockchain network mainly for authenticity, ownership, and provenance of anything physical such as artwork, collection card.

Data collated from Statista, a top statistics portal, revealed from April 12 to June 15, 2021, the number of sales involving non-fungible tokens (NFTs) in the art sector improved significantly.

As of April 12, 2021, roughly twenty-four thousand NFTs were sold in the art sector alone during the past 30 days. As of June 15, 2021, the aggregated number of sales over 30 days rose to approximately ninety-three thousand.

In contrast to physical pieces of art which can be broken, lost, or destroyed, NFTs cannot be destroyed.

The relative scarcity of some NFTs has really helped some of them appear quite valuable, as clips of NBA star Lebron James dunking are selling for as much as $225,000.

These digital assets are getting more global crypto attention with several websites like NBA Top shot Foundation, Nifty Gateway and Opensea selling these tokens. Also, leading crypto exchanges like FTX now have an NFTs market.

The biggest risk remains its considerably low entry-level as any individual with internet capability can create non-fungible tokens out of literally anything, which often means there are many bad tokens out there that will take a crypto professional to weed out what’s worth collecting or investing in.

In addition, because most of these blockchain transactions are anonymous and irreversible, NFT collectors should take precautionary measures when fulfilling a transaction coupled with using well-known and trusted wallets to associate with your collection of NFTs.

Brent Crude Bulls’ Fast Approach $75 a Barrel

This was largely attributed to improved demand for energy, as evidence of major economies reopening gather momentum coupled with bullish outlook for oil further boosted more buying pressures.

Oil demand outlook looks sturdy as recoveries across the United States, Europe and Asia, reveal energy demand returning to pre-pandemic levels in the second half of 2022.

Oil bulls are hitting the accelerator pedal hard after data from the American Petroleum Institute revealed U.S. crude inventories plunged by 8.54 million barrels in the past week, thereby printing its biggest drop since the start of this year, as oil traders wait for more confirmation from the Energy Information Administration data, scheduled to be released later today.

The black liquid hydrocarbon broke above rallied upwards to breach above $74 a barrel price level thereby reactivating its bullish scenario again, as it approaches the first positive target at $75 a barrel, with price patterns suggesting a continuation of the bullish bias to target $77 a barrel on the mid-term basis, noting that it is important to hold above $73 a barrel to continue the expected rise.

Market commentators further anticipate a likely scenario for oil prices hitting above $80/bbl. in the Q3 as vaccination rollouts continue to lift global economic activity and amid the full resumption of air travels.

Though market pundits argue that such surge might provide OPEC+ a scenario for price ceiling, with greater risks of supply shortages coming into play.

Oil prices’ present volatility is currently taking its course ahead of the Federal Reserve interest decision, scheduled to hold later today, with oil traders not expecting a change in interest rates, a narrative around preliminary discussions on scaling back bond purchases could negatively impact on the price of the black liquid hydrocarbon in the near term.

For a look at all of today’s economic events, check out our economic calendar.

Oil Bulls Break Above Two-Year High

Oil bulls are currently rallying strongly on reports revealing an improved outlook for energy demand in key international markets coupled with increased COVID-19 vaccinations further boosted market confidence at the most liquid commodity derivative market.

At the time of writing this publication, the British based oil contract, Brent crude, broke above $73 a barrel posting gains of about 0.3%, after gaining more than 1% last week and hitting the highest price levels since May 2019.

In addition, the U.S. West Texas Intermediate futures also posted gains of more than 0.2%, to trade at around $71 a barrel, after reaching the highest price levels since October 2018 while posting gains of nearly 2% for the past week.

Present market sentiments reveal the bulls call the shot, as oil prices resume their positive moves by Monday’s open, moving away from the $73.00 barrier in the case of Brent crude, reinforcing the expectations of achieving more gains in the coming days as vehicle traffic and air travel return to pre-pandemic levels at many emerged markets, driving three weeks of gains for the oil benchmarks.

Though it remains to be seen if the bulls present firepower can break the strong resistance level of $75 a barrel with the resurging viral attacks biting hard on India, the third largest importer of crude oil.

On the other hand, market commentators further anticipate a drop of oil prices below the $72.5 will pause the expected rise and press on oil prices to start a correctional bearish wave on an intraday basis.

However, such drop seems unlikely, taking to account Goldman Sachs, expects the slow progress in negotiations surrounding the Iran nuclear deal weighing hard on oil supply, thereby supporting the price of the black viscous hydrocarbon at least for the mid-term.

Also, comments from the U.S. Secretary of State Antony Blinken that buttressed a significant number of sanctions remaining in place despite Iran’s expected compliance on the nuclear deal, arbitrarily burnt the hopes of oil bears riding on awash market supply for the long haul.

For a look at all of today’s economic events, check out our economic calendar.

Elon Musk’s Tweet Revives Bitcoin Bulls

At the time of filing this report, Bitcoin traded near the $40,000 mark, posting gains of about 12% for the day.

Present price actions reveal the most popular crypto asset had been hovering in a lower corridor between the $30,000 and $40,00 price levels since the second week of last month, suggest the asset was consolidating.

Though recent macros reveal that investors are increasing their buying capacity on the crypto asset partly attributed on Elon Musk’s recent comment suggesting Tesla would resume buying and accepting Bitcoin once miners go 50% with renewable energy.

These fundamentals boosted the faith among vintage bulls having a long-term mindset on the most popular Crypto amid recent calls for tough Crypto regulations.

The tech Billionaire’s tweet also suggested that the world’s most valuable carmaker will resume allowing Bitcoin transactions, once those terms were met.

Consequently, Elon Musk reiterated his earlier statements on Tesla having sold only 10% of its Bitcoin holdings, which seem to indicate Tesla’s hasn’t sold anymore, triggered more bullish sentiments around the Crypto asset, in the early hours of Monday.

Such a surge on the price of the flagship Crypto pushed the market value of Bitcoin to about $740 billion or 45% of the total crypto market valuation.

Though it’s important to note Bitcoin is still down by about 38% from its all-time high of $64,778 set on April 14.

Additionally, market sentiments around Bitcoin seem to be rallying stronger on reports that President Hassan of Tanzania instructed its central bank on reforming their banking processes, singling out crypto assets as the future of finance, further gave Bitcoin bulls the much-needed momentum in aiming for the resistance level of $40,000.

For a look at all of today’s economic events, check out our economic calendar.

Gold Buyers Adopt a Wait-and-See Attitude

The greenback known for normally moving inversely against the precious metal inched up by 0.15%, still gold bears run seem to be capped by falling 10-year U.S. Treasury yields which plunged below 1.50% for the first time since May 7.

Metal traders have their minds focused on the Consumer Price Index report, known for measuring changes in inflation and purchasing trends including jobless claims data, due later in the day, to get further insights on the world’s largest economic growth and direction of the U.S Apex Bank’s monetary strategy.

Consequently, Market watchers further disclose a surprise upside in inflation could tilt the U.S Federal Reserve Bank in taking emergency discussions on tapering its asset purchases sooner than later, despite the prevailing narration that shows most U.S monetary officials would still be looking for substantial progress toward maximum employment before considering tapering.

Gold bugs will however be banking on the European Central Bank scheduled to postulates its Interest rate decision in a few hours time, with European monetary officials having all the evidence they need to keep in place their ultra-loose monetary stimulus program intact, suggests gold bulls will find strong support around the $1,850 per ounce price band.

Recent price actions further reveal gold buyers have adopted a wait-and-see attitude, leaving gold prices increasingly vulnerable to a near-term pullback as demand for gold futures contracts are now slowing alongside physical flows, amid India’s ongoing battle against its worst viral crisis in history.

Investors Flock to U.s Dollar on Concerns Over Fed’s Plan on Tapering Asset Purchases

At press time the U.S. Dollar Index used in gauging the greenback’s strength against a basket of major currencies ticked up by 0.20% to trade at 90.118 index points.

Although the recent weaker-than-expected non-farm payroll data would ease hawkish pressures on the U.S Federal Reserve at least in the near term, global investors are becoming shaky on news that the U.S Apex bank will start discussing tapering asset purchases given the high levels of inflation.

Recent comments from U.S. Treasury Secretary Janet Yellen that higher interest rates, and higher inflation levels, would be good for the $22.7 trillion economy, reinforced buying pressure on the U.S dollar momentarily.

In the past few days, currency traders are taking cues from the US stimulus updates and broader market sentiments, partly responsible for the significant amount of selling pressures sighted in leading commodities, that include Crude oil, precious metals.

Also, at the Crypto market, Ethereum and Bitcoin were down more than 8%, as institutional investors reduced their holdings in risky assets.

Currency traders in the coming days await the report on the consumer price index due in some days’ time, to track the U.S apex bank’s next move ahead of its all-important meeting scheduled to hold in the following week.

The U.S Federal Reserve Bank is expected to reveal its plans on tapering assets later this year with the actual process to start by Q1, 2022.

However, Current price patterns reveal currency traders’ activity remains subdued after Friday’s lacklustre U.S Job report, posting evidence that many businesses in the world largest economy are struggling to find enough workers as the economy rapidly recovers from COVID-19.

Dollar bulls in the mid-term face an uphill battle after recent economic data show the world’s largest economy is still missing more than 7 million jobs lost due to COVID-19, yet business executives complain they can’t find workers.

Theta Fuel, Post Record Weekly Gains Amid Stalled Rally in the Crypto Market

At the time of writing this report, the digital asset was trading at $0.48 with a daily trading volume of $108 million. Theta Fuel is up 9% for the day. The Crypto asset currently has a market value of about $2.56 billion.

Recent chart patterns reveal Theta fuel uptrend is still on course taking to account its record high buying pressures since the ending February remains intact.

In addition, price patterns further postulate the crypto asset is expected to test the upper resistance levels around $0.54 without drifting lower to support levels pegged around the price band of $0.35

TFUEL is a utility token and also acts as a gas token, on the Theta blockchain functions as a decentralized video and data delivery.

This means that it best described as the lifeline of the Theta blockchain, such as payments to relayers for sharing a video stream, fees associated with transacting nonfungible tokens, and for deploying and interacting with smart contracts.

The company also pointed to the ultra-low transaction fees on its native blockchain and lightning-fast execution as key fundamentals behind its increasing adoption.

“Our proof-of-stake protocol purpose-built for media becomes even more important as the cost of minting and transacting NFTs on Ethereum,” according to Theta Labs.

The digital asset is traded on leading Crypto exchanges like Coinbase and is usually bought indirectly as investors must possess an Ethereum or Tether to trade with it.

Investors are banking on the crypto assets for more return on investments after Google the owners of the world’s most valuable search engine some months ago joined the likes of Gumi Cryptos, Binance, and Blockchain Ventures, as external enterprise validators that propose and confirm new blocks on the Theta blockchain.

Currency Traders Await on Consumer Price Index (CPI) Figures

At the time of writing this report, U.S. Dollar Index used to gauge the dollar strength against a basket of major currencies inched up by 0.01% to trade at 90.142 index points.

USD bulls seem to be suffering from exhaustion based on the growing number of short sellers during the past week, even as some key monetary officials maintained that the world’s largest economy still has a long way full economic recovery with the Federal Reserve Bank likely to maintain their status quo by keeping their current dovish stance.

All eyes will be on the consumer price index (CPI) figures due in the coming days. Market watchers anticipate such data could influence the Federal Reserve Bank’s next move as it further tracks current price pressures. A weaker report could mean further declines for the safe-haven currency.

In addition, currency traders are also weighing on recent economic reports that reveal the U.S. economy might be nearing its peak while the rebound in Europe and other emerging markets might further add bearish pressures on the dollar.

Consequently, investors are monitoring the inflation rates at the world’s largest economy, as higher rates could trigger fiscal officials to curb asset purchases that bailed the United States economy from the turmoil caused by the worst viral attack in modern history.

Traders also have on their minds the massive balance sheet of the Federal Reserve Bank hitting records high with voices on tapering gaining momentum thus giving potential support to boost the greenback and U.S Treasury yields in the mid term while tarnishing Bitcoin and precious metals appeal.

Why Bitcoin Can Likely Break High in the Coming Weeks

Though market Indicators suggest limited upsides towards $40,000 price levels as resistance remains strong, amid reports that some leading multinational banks have plans on issuing Crypto brokerage services to their high-net-worth clients coupled with Google recently lifting a ban on Crypto ads.

It’s important to observe the Crypto-verse is still having some anxious moments with many investors’ minds wondering if the brief bearish market trend will resume on the account of the record sell-offs recorded few weeks ago, yet data reports that show the Bitcoin market is presently in a re-accumulation phase.

Data retrieved from Glassnode reveal long-term investors spending patterns appear unaffected by the record sell-offs seen in the month of May coupled with the fact that the rapid price swings of their spending volumes had actually decreased suggesting this type of investors are generally unwilling to liquidate Bitcoin at its present price levels.

However short-term holders primarily retail investors and day traders, on the other hand, increased their spending activity by more than 5 times during the sell-off periods with the maximum spending occurring near the lows of the Crypto market.

Consequently, present technical indicators show a significant number of crypto fundamentals gaining some positivity as it trades much high than its $35,000 support levels which further suggests selling pressure could subside in June.

Giving credence to such bias is data collated from Glassnode postulating the amount of Bitcoin Exchange Inflow Volume on the 7-day moving average just reached a 5-month low of $57 million.

Market pundits further reveal long-term investors representing more than 50% of the Crypto investors base have been buying from the dip, as global central banks show no signs of abating from their massive quantitative easing programs and ultra-low-interest rates policies despite an era of high inflation rates prevailing in many key economic markets.

However, some crypto experts argue that the recovery needed a sustained bullish activity to avoid the return of Bitcoin bears.

This bias is on sentiments showing the “death cross” pattern looming on Bitcoin’s weekly chart, signaling a downside in the form of the 50-week and the 200-week moving average crossing over one another.

Oil Prices at Their Highest Price Levels Since October 2018

Recent economic data coming from the world’s largest economy, postulate energy demand is expected to relatively gain momentum, particularly this summer with the ease of restrictions in many key economic hubs and social mobility gathering pace.

At the time of drafting this report, the U.S. West Texas Intermediate (WTI) crude futures spiked by 0.5%, to trade at $68 a barrel further extending a 2% gain recorded on Tuesday. Crude oil prices are trading at their highest price levels since October 2018.

The British based oil contract, Brent crude futures also posted similar gains as it traded near $71 a barrel, after surging by 1.3% overnight, when it hit its highest mark since early March.

Oil bears are presently grumbling on the sidelines amid growing energy demand outpacing supply gains even with the agreed month-by-month by OPEC+ and all production increases taken into account.

Present price actions reveal Crude oil bulls hold the ace after a 3-month consolidation as oil bulls gather enough gas in breaking out to a new high on account of Prince Abdulaziz bin Salman’s Oil Sherriff most recent statement revealed a solid demand recovery in the world’s most powerful economies remain on course coupled with the remarkable pace of vaccine rollouts, gave oil bulls enough firepower to break their immediate resistance levels.

OPEC liable for over one-third of global oil production is seeking to balance an expected surge in energy demand globally with the potential for an increase in Iranian output.

In addition, OPEC Secretary-General, Mohammad Barkindo also boasted traders’ morale as he disclosed the oil cartel could absorb Iranian exports.

 

Oil Bulls Take Charge Over Growing Optimism for Energy Demand Growth in Q3

At the time of writing this report, the British-based oil contract, Brent crude traded near $70 a barrel after breaking their highest levels in two years at last week’s trading session. The American-based oil contract, known as the West Texas Intermediate crude traded near $67 a barrel, posting gains of nearly a percent.

Both major oil contracts are on-page for their second monthly gains, with experts foreseeing a robust energy growth outstripping future supply despite growing concerns over the likely return of Iranian crude and condensate exports.

Consequently, macros reveal oil supplies might drop significantly on reports oil companies aren’t rushing to boost their oil production despite rising oil prices even as Brent crude approaches $70 a barrel, with some influential investors already demanding oil majors spend less on their drilling operations coupled with a significant number of environmental activists pushing against fossil fuels, further hint that Iranian Crude supplies might literally not hurt energy demand/supply rebalancing in the long term.

The oil cartel group popularly known as OPEC is expected to stay on course over its plans to gradually ease supply cuts until next month.

Present price actions reveal oil bulls are taking in charge of the intra-day time frame with crude oil prices fluctuates around the breached resistance in the case of WTI, with Oil Bulls turning $65 a barrel as their minor support, oil bulls are waiting for more motivation as oil prices resume the expected bullish trend for the upcoming period, with its next targets located at $67.95 a barrel.

Is Bitcoin’s High Computing Power its Achilles Heel?

Data collated from the Cambridge Center for Alternative Finance (CCAF), show the world’s most popular crypto asset presently consumes around 13.37-gigawatt annum— 0.6% of global electricity supply, or roughly equivalent to the annual energy draw of an emerged market countries as Sweden.

Elon Musk, some weeks stunned crypto investors arbitrarily when he unexpectedly announced via Twitter, Tesla was no longer accepts Bitcoin as a means of payment citing environmental concerns.

Bitcoin mining’s energy-intensive process was the major reason behind’s Elon Musk decision as the most popular crypto asset relies on a significant amount of electricity generated from coal known for high carbon prints and toxic gases.

“We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” Elon Musk said.

Just recently the government of Iran recently placed an embargo on the mining of bitcoin as revealed by the country’s president, Hassan Rouhani, partly because of Bitcoin’s energy-intensive process triggering blackouts in a significant number of Iranian hubs.

Miners on the blockchain often use powerful computing power in solving complex mathematical tasks that effectively facilitate a bitcoin transaction to go through, triggering Bitcoin miners to be rewarded for their efforts with the digital asset.

The energy requirement in auditing such bitcoin transactions requires a huge amount of computing power which translates to a huge amount of electricity.

Iranian fiscal officials further revealed most of the energy consumption gotten from Bitcoin mining is largely attributed to illegal miners, or those operating such permits.

Although, Sam Bankman-Fried, the founder of Crypto derivatives exchange FTX recently disclosed that most of the current energy usage will decay away as block rewards go down the rest of the energy usage will scale linearly with Bitcoin’s price.

Sam also disclosed that the Ethereum blockchain’s recent upgrade to proof of stake will enable a less energy-intensive system that will likely address some of the climate concerns, Still, a growing number of environmentalists are increasingly becoming impatient on the environmental impact of Bitcoin mining.

“Today, Bitcoin mining creates about the same pollution footprint per unit of energy as natural gas,” says Alex de Vries, who oversees Digiconomist, a company that monitors Bitcoin’s electricity usage. “That’s because hydro in China offset much of the effect of coal in that nation and other parts of the world.”

Not forgetting China accounts for more than three-quarter of the Bitcoin mining activity globally as of April 2021,

However, current reports reveal that China’s recent ban is more of an economic issue with its officials trying to prevent an economic shock just in case a Crypto bubble burst as the world’s second-biggest economy aims for a stable and viable financial architecture immune to volatility that often prevails in many Crypto assets.

Present price actions show the environmental concerns of Bitcoin seem to be receding as it broke above $35,000 price levels after Elon Musk disclosed, he held “potentially promising talks” with North American bitcoin miners on how to make Bitcoin’s mining process more environmentally friendly.

Is Bitcoin’s Bullish Run Over?

Some hours ago, Crypto bulls propelled Bitcoin and many crypto assets into want crypto pundits called a relief rally, however recent market actions reveal such moves stalled as investors became unsure of what might happen next.

Adding credence to such bias is data collated by Glassnode that shows as Bitcoin price plunges the supply of the three major stablecoins namely Tether, Circle, and DAI has break record highs, suggesting, investors are mostly staying on the sidelines.

About $20 billion of long positions were liquidated in the past week, according to Sam Bankman-Fried, the helmsman behind crypto derivatives exchange FTX. “In terms of price movements: the biggest part of it is liquidations”

Short-term traders are currently having a tough task breaking into profits on the bias that reveal 70% of all short-term Bitcoin holdings are currently at a loss.

After a recent attempt by Bitcoin buyers in pushing the flagship crypto above $40,000 price levels, it only took few hours for it to fall back on the $38,000 support level.

Weakened market sentiments were triggered when the Chinese government in the past few days issued a crackdown on the Bitcoin mining industry coupled with exclusion from its financial ecosystem as the Chinese Apex bank reaffirmed rules curbing crypto transactions, thereby pushing the Crypto market to lose more than $500 billion in value.

Indeed, it’s no longer a hidden fact that the pioneer crypto asset is still the engine that drives the crypto market. Market analysts still expect more headwinds over growing calls for stronger regulations.

Consequently, Fink the leader of the world’s biggest asset management company advised investors that it was too early to know whether crypto assets like Bitcoin were “just a speculating instrument and buttressed on broker-dealers being the biggest gainers amid the crypto’s high volatility.

This further suggests though BlackRock has some of its funds exposed to the world’s most popular crypto asset, considering it owns a 15% stake in MicroStrategy, managed by Bitcoin supporter Michael Saylor, experts anticipate the $9 trillion asset management company would prefer to see more stability from Bitcoin before directly exposing its clients to them.

The flagship asset has already lost more than a third of its value since its mid-April record high as worries about the pioneer crypto negative environmental impact has dented the argument that Bitcoin will inevitably draw more mainstream investment.

U.S Dollar Bulls Having a Rough Q2, Despite Present Inflationary Pressures

The dollar bulls are presently having a rough Q2 as the safe-haven currency suffer pullbacks amid high hopes that the global economy was set for a strong recovery, thereby triggering global investors to increase their buying pressure on riskier assets, particularly global equities via reducing their dollar holdings.

Dollar bulls were earlier seeking a lifeline on the bias that some leading market experts saw higher U.S. interest rates coming sooner than the U.S. Federal Reserve timeline amid rising inflation.

Candlestick patterns reveal dollar bulls have failed several times in the past few days to break above 90.172 a notable level of resistance, hinting the greenback faces more headwinds with gold breaking above $1,900 an ounce, the tides against the dollar further seems to be strengthening, at a moment that appeared to look the greenback might likely rally, on resurging COVID-19 attacks at key emerging markets.

In the short-term, currency traders will fix their gaze on April low, pegged at 90.42, as such resistance level needs to be smashed with market forces pricing in a slightly more hawkish Federal Reserve Bank going forward.

However, recent data reveal currency traders are reining in their bearish bets on the world’s safe-haven currency following a stronger April U.S. inflation data, meaning it could be costly ruling out DXY bulls resolve in breaking above the 90 index points in the mid-term.

The inability to overcome such a price level might further signal the presence of sellers, as the first downside target will be a minor pivot fixed at 89.618.

Oil Bulls Start Monday Trading Session Roaring Loud

Oil bulls momentarily kept their bandwagon moving, in spite of oil glut risk as oil traders monitor the progress of talks to revive a 2015 Iranian nuclear deal that at one point might likely flood the fragile market with Iranian oil supplies.

At the time of writing this report, the British based oil contract, Brent crude prices were up by nearly 0.7% to trade near $67 a barrel as the contract rolled over to the August 21 contract on Sunday, also the West Texas Intermediate futures also posted similar gains to trade at $64 a barrel.

Oil bears went on a rampage last week after Iranian President Hassan Rouhani revealed the world’s most powerful economy was “ready” to lift sanctions on the country’s black fossil supplies, triggering a spiral fall on the energy derivative prices in the latter part of last week with rising COVID-19 caseloads in India, oil traders seem to cast their bullish bets over positive economic macros coming from China and the United States.

Consequently, candlestick patterns reveal oil bulls will need more than strong macros from these two major economies sessions with recent candlestick formations showing some form of exhaustion as it approaches $67 a barrel, accompanied by overbought signals with the Exponential Moving Average 50 forming a negative pressure against the prices of Brent crude.

Still, market commentators remain bullish on the average, as it rallied this year on the successful roll-out of COVID-19 vaccines coupled with improved social mobility around the globe.

Athough such upsides seem to be capped since late Q1, with fresh waves of viral infections rolling out in some key energy markets as the oil cartel gradually loosens its grip on tightened oil supplies, thereby increasing the odds for oil prices staying below $75 a barrel in the first half of 2021.

For a look at all of today’s economic events, check out our economic calendar.

Is Buying Bitcoin Right Now a Smart Idea?

During his most recent YouTube interview, the highly revered crypto expert highlighted on the flagship crypto strong fundamentals noting many indicators point toward price positivity for Bitcoin.

“There’s an immense amount of activity on the network between investors compared to the valuation,” Woo said, referring to data from Bitcoin’s NVT ratio, which shows blockchain network activity in relation to market capitalization.

“We haven’t seen any kind of mania,” Woo continued. “We dumped down from a level which was highly organic — no speculative premium,” he said. “The 2017 top, for example, we were

I think 3.8% higher than the organic evaluation.”

Consequently, the U.S. Treasury Secretary Lawrence Summers in a recent interview with Bloomberg Television gave his bias on what crypto assets might likely be in future, saying in spite of its price volatility it could be more of digital gold,” even if their importance in the world global economy diminishes

Gold has been a primary asset of that kind for a long time,” said Summers, “Crypto has a chance of becoming an agreed form that people who are looking for safety hold wealth in. My guess is that crypto is here to stay, and probably here to stay as a kind of digital gold.”

Current data revealed most of the recent selling was done by investors that bought Bitcoin assets in the last few months, suggesting long term investors are still bullish on digital assets.

Still, a significant number of crypto experts have revealed this might not be a good time to invest in the crypto market, considering the high price swings that have battered valuations at the moment, and investors should be ready to lose all their funds.

Adding credence to this is the European Central Bank Vice President Luis de Guindos who recently warned that Cryptocurrencies shouldn’t be viewed as a “real investment” because their underlying value is hard to discern.

Though some market pundits think it may not be a bad idea to buy the dip, given Thursday’s sudden rebound.

Lark Davis spoke on the present amount of stable coins ever in crypto history on Crypto exchanges, meaning investors were ready to pump the market and gobble the dip.

That being said, investors need to be aware that the crypto market is not a suitable safe long-term investment option, given the high volatility and risk factor.

Though investors having a high appetite for risk and a significant amount of disposable income to play with, it could be right up your alley, taking to account its returns are usually much higher than traditional financial investments but investors should also be ready for frequent bouts of extremely high price swings.

For a look at all of today’s economic events, check out our economic calendar.

Major Forces Behind Bitcoin’s Worst Losses Since 2013

Binance the world’s biggest cryptocurrency exchange and Coinbase the most valuable crypto exchange suffered had service breakdowns largely responsible for Bitcoin plunging the most since 2013.

Investors’ outrage began when the world’s biggest crypto exchange, suspended Ethereum withdrawals citing network congestion coupled with Coinbase, Gemini, Kraken suffering some service disruptions as crypto assets tumble.

Crypto exchanges are the most used platforms by many investors mainly to buy and sell their digital assets amid the decentralized nature of these financial instruments, yet more often go offline, when the traffic on the blockchain increases exponentially, leading the same market critics to call for more sustainable platforms, as these triggered the flagship crypto in losing as much as $10,000 within few hours.

The number of liquidations recorded yesterday was unprecedented because a lot of investors became very vulnerable and couldn’t control their assets, taking to account some of them borrowed money in magnifying their returns, with such price volatility taking the centre stage about 800,000 investors had their accounts liquidated, equating to $9 billion worth of crypto assets.

Its critical to also understand the crypto market is still in a new financial market, thus remains in the price discovery period, which often experiences the most volatile cycle as the path to true price discovery is often fraught with seismic volatility which often distort prices at record levels.

Consequently, some wealthy investors including Justin Sun the founder of TRON, recently disclosed he bought over $150 million worth of Bitcoins amid recent pullbacks in the world’s most popular crypto asset.

In addition, market pundits anticipate ‘the greatest wealth transfer in modern time with Bitcoin gaining as much as $10,000 within four hours after falling as low as $30,000 on Tuesday.

Strong support from arguable the most influential billionaire in the Crypto verse gave support to the flagship Crypto with Elon Musk, restated that Tesla had diamond hands, implying that they haven’t sold their Bitcoin positions.

As the Crypto market recovered some of its worst crashes in history, sentiment from large institutional still remains overwhelmingly high with such high price swings giving them an ample opportunity to increase their stakes on the ever-changing financial asset class.

Furthermore, Michael Saylor, the founder of MicroStrategy, revealed entities under his control have now acquired a whooping 111,000 Bitcoin and have not sold a single satoshi.