Bitcoin Surges by $3000, Amidst Market Fluctuations

Tuesday, 19 March 2024, 17:33

Despite a massive $3000 surge in US trading, Bitcoin remains down 2.5% for the day. Market concerns over ETF inflows and Microstrategy's buys persist. A notable correlation between Nasdaq and Bitcoin has been observed, hinting at broader market sentiment rather than Bitcoin-specific factors. The FOMC decision is looming, with the market receptive to a potential dot plot adjustment to 50 basis points, contingent on Powell's stance.
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Bitcoin Surges by $3000, Amidst Market Fluctuations

Bitcoin Rebounds Over $3000 in Stunning Turnaround

Ugly trading in Asia has led to big buys in the US. Bitcoin is up more than $3000 from the low in US trade of $62,328 and is trading at $65,681. Despite the huge pop, it's still down 2.5% on the day as the market frets about ETF inflows and the latest buy (which is done) from Microstrategy.

The turn in bitcoin came at almost the same time as the rebound in the Nasdaq and broader US equity markets. That speaks to broader sentiment rather than something bitcoin specific. There has been a high correlation between the Nasdaq and bitcoin this year so that isn't a surprise.

Main Risks Ahead

  • The FOMC decision looms, with market comfort increasing for the potential dot plot adjustment to 50 basis points.

So long as Powell maintains a constructive tone, the market may respond positively to the anticipated changes.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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