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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- Selling pressure on Bitcoin has been surging dramatically in the past few months as the sharp tightening in financial conditions and global risk off sentiment have left cryptocurrencies vulnerable.
- We previously saw that Bitcoin (and most of the cryptos) have been mostly supported by the massive liquidity injections following the Covid shock, but have consistently failed to perform in risk-off environment.
- The chart below shows the quarterly performance of Bitcoin with the one of the SP500. The last three ‘bear’ equity markets were associated with some significant losses in Bitcoin.
- For instance, Bitcoin prices crashed by 44% in 2018 when the SP500 fell by 14%, and Bitcoin fell by 9.5% in Q1 2020 following the Covid shock which triggered a market panic.
- This quarter, Bitcoin prices are down 56% (*up to date), with the cryptocurrency approaching its key support at $20,000, lowest level since December 2020.
- Next support to watch stands at 19,273, which corresponds to the 76.4% Fibo retracement of the 3,915 – 68,992 range (2020 / 2021 low high).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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