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At the beginning of the new week, Bitcoin continuously had a strong downward momentum when plunging below the $16,000 mark.
Just yesterday, Bitcoin was still hovering at the $16,800 area to break out of $17,000, but today selling has pushed the price below the $16,000 zone, sometimes bottoming out at the $15,800 area. 24-hour volume spiked 57% and total value $25.4 billion.
BTC needs more factors for the bulls to turn back if it wants to break out of the red descending trendline once again. In the near term, the market will continue to lack investor interest, due to the risk of continuing to create new lows for 2022.
A sharp sell-off that weakens the greenback could save the leading crypto asset from its downtrend, or at least improve investor sentiment. If this situation plays out, BTC will likely return to near $19,000 and bounce off the red descending trendline once again.
The main reason for Bitcoin’s sharp decline this morning is unknown, but it must include the hacker in the FTX case swapping a large amount of ETH to BTC. The hacker moved the ETH to a new wallet address and began swapping the ETH for the wrapped BTC, according to data from PeckShield. In the past 4 hours, the hacker transferred 50,000 ETH to a new wallet address, then swapped it all to get more than 3,517 renBTC – worth nearly $60 million. The attacker then uses Ren to exchange all renBTC for Bitcoin and then flees. This has put pressure on the ETH price since that time.
Ethereum (ETH) has lost the key $1,200 mark as selling pressure is intense. In just 24 hours, the trading volume doubled and reached a value of 11.7 billion USD.
With BTC recording 2 consecutive weeks of closing in the red, the altcoin market also turned down.
Leading the way is Arweave (AR) with a drop of more than 15%. However, with the rally in the past week, the decentralized data storage protocol is still showing a return of nearly 10% on the 7-day timeframe. It is followed by Chiliz (CHZ) and Ethereum (ETHW) with a decline of more than 13% on the day. Other projects such as Aptos (APT), Algorand (ALGO), NEAR (NEAR), Dogecoin (DOGE), Internet Computer (ICP), The Sanbox (SAND)… fell from 9-11% in the short term.
The SNM token is back on the ground after x10 just yesterday sparked a lot of speculation that this is just whale pumping.
Market sentiment continued to fluctuate when the FGI dropped to 21 points in the Extreme Fear area.
S&P 500 futures fell slightly on Sunday night ahead of another set of business reports during the Thanksgiving weekend. S&P 500 futures contract slightly down 0.1%; Dow Jones futures lost 38 points, or 0.1%, and Nasdaq 100 futures were flat. In the last session of the week, the Dow Jones index gained nearly 200 points, or 0.6%; The S&P rose 0.5% and the Nasdaq Composite edged up 0.01%.
Investors have been reflecting on the strength of the recent bear market rally, which began at the beginning of the month with the October consumer price index and gained some momentum with the wholesale price index last week. However, the upside momentum was limited as Federal Reserve officials said that inflation showed no signs of slowing down.
Retail sales rose in October, but some big companies like Target reported slowing demand and Amazon announced it would lay off 10,000 employees, although Home Depot and Walmart reported positive results.
In the past, the period before Thanksgiving would have been a quiet time in the market. Investors will see another round of business reports from Best Buy, Nordstrom, Dick’s Sporting Goods and Dollar Tree before the holiday season kicks off.
Investors will also receive a range of economic reports, including consumer durables, home sales, jobless claims and consumer sentiment, as well as the release of minutes from the recent meeting. of the US Federal Reserve (Fed).
Ahead of the most important shopping season of the year, consumer stocks have struggled this year. Target’s shares fell significantly after the company warned of “changes” in consumer behavior.
Amazon, the world’s largest online retailer, said it is bracing for slow growth as people tighten their spending. Shares of the companies are down 29.6% and 43.5% year-to-date, respectively.
However, recent data shows signs that inflation may ease as retail spending is stronger than expected. This increased investor optimism that the economy could avoid a recession or just experience a mild recession.
Over the past week, some investors have poured about $1.05 billion into consumer stocks, according to data from BofA Global Research.
Edward Yruma, analyst at Piper Sandler, said: “There are still doubts about the true spending of consumers, as these are difficult times. Investors will continue to monitor consumer behavior.” Edward remains upbeat about the performance of retailers like Nordstrom and Target. However, he believes it is too early to bet on this sector because inflation is high by standards and Wall Street is concerned that the Fed’s tightening of monetary policy could lead to a recession in the US. America.
Despite a strong increase in retail sales in October, subprime auto loans are increasing and shopping needs of higher income groups have begun to decline.
“Consumers will be the backbone of the economy this year, but as interest rates continue to rise and the labor market slows, consumers will have no choice,” said Morgan Stanley economists. in addition to reducing spending”.
However, Jim Paulsen, Head of Investment Strategy at Leuthold Group, said the opposite: “If there is only a slight recession, this is a very good time to invest.” Jim Paulsen is betting on stocks of retailers, hotels and restaurants that will rise sharply next year.
“We’re too worried about inflation, but consumers are adapting and will spend again,” said Bobby Griffin, Analyst at Raymond James.
In addition, increased consumer purchasing power could also change the Fed’s anti-inflation campaign. Chris Zaccarelli, Chief Investment Officer of the Independent Advisor Alliance, believes that signs that consumers are unaffected by the rate hike could halt the Fed’s rate hike cycle.
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