Despite the fact that on Dec 5, 2022, Bitcoin failed to move above $17k, the world’s biggest and most expensive cryptocurrency has shown market support at around $17k.
Moreover, crypto bulls and whales have still backed their long position on Bitcoin. In an interesting development on Monday, where Bitcoin holds its market price, S&P experienced a decline of 1.5% in its index.
Despite the fact that the bullish trend regarding Bitcoin seems stable for two consecutive days after quite some weeks. But the current price mark is way too lower than the expected price for Bitcoin, which was $19000 to $20,000.
U.S Stock Markets Plunged
Analysts do believe that the reason Bitcoin retained its price at $17K and stood still is the decline in the U.S. S&P 500 of 1.5%.
This has also slowed down the price hikes in the cryptocurrency marketplace. On Dec.5, 2022, following a relatively strong November ISM Services data fueled the rumors that the FED was likely to support the interest rate hikes.
Despite this fact, back in September FED member Jerome Powell agreed upon the fact that there is a higher need of keeping the interest rates flat.
But given the current economic conditions, this seems highly unlikely.
The current situation is expected to remain the same until investors could see a clear picture of a better employment rate and better performance of the DXY index that measures the international currency strength of the US dollar.
Moreover, the rise in the income of exporters and those companies which operate in the outside U.S. also needs to achieve stability before the FED can exercise a steady inter-rate option.
Moreover, USD one more shows the clumsiness as a result investors have a clear lack of confidence in the current market situation.
The Impacts of the Current Market Are Continuously Causing Damages
The fact is that the current economic turmoil has daunting impacts on both the crypto and fiat markets.
Most recently, a U.S.-based cryptocurrency blockchain Bybit decided that company is going to offboard almost 30% of its staff.
This downsized news is another indication that the current unemployment crisis in the U.S. is only going to be more intense than it looks now.
Amid all the bad news, investors are briskly investing in the Bitcoin derivative, but the point to understand here is that investors should learn how the cryptocurrency market works.
Despite the fact that Bitcoin has retained its price, the fiat currency turmoil has moved many cryptocurrencies into the circle of volatility once more.
Apart from that, Bitcoin’s progress to reach the $19000 to $20,000 mark also remained unachieved. On the other hand, the demand for Asia-based stablecoins also decreased by 4%.
Cryptocurrency and fiat currency market experts do believe that after the Covid-19 recession, the current DXY instability and job crisis in the U.S. marketplace can be the next cause of recession in the markets.
So far, the issue seems unresolved, and as the result, FED is not in a position to freeze interest-rate hikes. If the situation remains similar for days to come, market instability can go higher.
Derivative Buyers Seem Skeptical That Bitcoin Reach $19k to $20K Mark
The Stablecoin market getting support at around $16.8 and mild market demand for derivatives is the reason that those investors who are putting money into derivatives are finding it hard given the current circumstances of Bitcoin (BTC) going above the $17k mark.
A more bullish sentiment toward the derivatives can push the premium on Asian stable coins by 3%. Derivatives investors are confident of a bearish run in the future.
However, bull runners seem a bit confused following Bitcoin’s steadiness after S&P 500 declined by 1.5%. But those who are still confident that Bitcoin will go bull in the coming days seems satisfied as Bitcoin has shown sign of stability first time after quite some time.