Crypto Starting The Week Strong, But Will Global Events Affect it? | Daily News & Weekly Forecast 6/6/22
Bitcoin produced slight positive price movement over the weekend from $29,500 to just over 30k but in just a few hours today, BTC shot up another ⬆️ 5% in price; currently sitting at around $31,200. As you can see in the chart below, the leading cryptocurrency has broken its downward trend for now! This is a sign of more possible upward momentum for Bitcoin 💪 and if the price can stay here and gain traction, then we could see Bitcoin accelerate even higher! Another major point to note is that BTC has finally reversed that dreaded record-breaking 9-week price decline, seeing an albeit small but green nonetheless, candle!
A positive-looking chart for Bitcoin on the 1-hour timeframe. However, can BTC keep it up or will this just be another failed attempt by the bulls?!
Leaving technical analysis to one side, we also saw the release of the NFP report last Friday, reporting better than expected job gains but slower monthly wage increases. However, the results were not massively different and we now need to see how the strength of the US dollar holds up or gets weaker over the next couple of days (💲 down = 👍 news for Bitcoin).
Starting as always with Ethereum (ETH); within just a few hours today ETH was able to recover its losses and is now sitting around $1900, being up almost 5% in price in the last 24 hours. If we can break above $1920, we could start to see a stronger increase in price! We know of course, ETH tends to follow BTC more often than not, however we do have some news scheduled in 2 days time (8th June) regarding another milestone in preparation for its move from Proof-of-Work to Proof-of-Stake - the Ethereum/Ropsten merge.
Here is a post regarding more information on the ETH/ROPSTEN merge.
The best performers 🚀 in the altcoin market over the last 24 hours were Theta Network (THETA) and Tezos (XTZ) with a % increase of almost 11%, Cardano (ADA) up 9.8%, Avalanche (AVAX) up almost 9% and Chainlink (LINK) & Solana (SOL) up almost 8%. Overall, a pretty GREEN DAY so far for the alts!
In other news, Polygon has their new dApp launch in 2 days which will facilitate the buying and selling of SW DAO products.
-As mentioned earlier in this article, the NFP report 📜 was released last Friday resulting in the US reporting better than expected job gains but slower monthly wage increases for May. Although we saw the US dollar gain strength at the time, we could see it swing back down when the dust settles (👍 news for Bitcoin).
-The next big report to be released will be out this coming Friday (10th June) which will be the Consumer Price Index (CPI) and ultimately, if the CPI misses its estimates then we could see further weakness in the dollar.
-The S&P 500 and NASDAQ 📉 both fell overall in the last few days, apart from last Thursday which could have pumped in anticipation of the NFP report!
-Tesla shares dropped on Friday, down 9.2% after Elon Musk signaled the company may need to cut around 10% of its workforce. Could this spark off a domino effect?
-The US dollar was higher on Friday, up 0.3% on the DXY . Over the week, the dollar broke a two-week losing streak. With all the information we have coming in from reports, we could see the continuation of further decline on the dollar.
Upcoming Economic Events
Event: The RBA Announcement (Reserve Bank of Australia) Date & Time: Tuesday 7th June, 7.30am EST Influenced Assets: 🇦🇺AUD and Australian Cash Markets Previous Figures: 0.35% Prediction: 0.75%
Why Our Traders Care: The Reserve Bank of Australia will raise its cash rate again at Tuesday's monthly board meeting as it battles ballooning inflation - it's just a question of by how much.
Last month the RBA raised the cash rate from a record low 0.1% to 0.35%. When this happens, borrowing becomes more expensive and mortgage rates increase. This means people will be less likely to invest in ‘riskier’ assets like crypto as their expenses increase. Savings held in interest-based accounts will also increase, incentivizing more people to put their money there as a safer option with more rewards.
Event: ECB Announcement (European Central Bank) Date & Time: Thursday 9th June, 3.30pm EST Influenced Assets: EUR & European Markets Previous Figures: N/A Prediction: N/A
Why Our Traders Care: The ECB announcement is an hour-long conference that is scheduled 8 times a year to explain interest rates and other policy decisions. Higher interest rates = low appetite for high-risk assets like Bitcoin!
Event: Ethereum / Ropsten Merge Date & Time: Wednesday 8th June Influenced Assets: ETH and participants within the ETH ecosystem Previous Figures: N/A Prediction: N/A
Why Our Traders Care: Ethereum hits a new milestone in preparation for its move from a PoW to a PoS ecosystem. In line with this, the Ethereum (ETH) / Ropsten merge is in 2 days and it will also signal the launch of a new beacon chain! This should bring more attention and influx into the Ethereum ecosystem!
Event: Canadian Employment Change Date & Time: Friday 10th June, 3.30pm EST Influenced Assets: CAD Previous Figures: 15.3k Prediction: 25.5k
Why Our Traders Care: This report is vital to crypto traders and investors because job creation is an important indicator of consumer spending. If we see an increase in employment and consumer spending, we should see more money coming into the crypto markets as it means people are more likely to put their money into ‘higher risk/higher reward’ assets.
Event: CPI M/M (Consumer Price Index) Date & Time: Friday 10th June, 3.30pm EST Influenced Assets: USD and US equities Previous Figures: 0.3% Prediction: 0.7%
Why Our Trader’s Care: This report will show the change in the price of goods and services provided by consumers. If prices rise, so do interest rates. And if interest rates go up, loans and mortgages go up = less money for riskier assets like crypto 😟
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