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Bitcoin Stuck In Tight Range As Traders Brace For Jackson Hole

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Bitcoin Stuck In Tight Range As Traders Brace For Jackson Hole


Most often volatile locked in a tight range ahead of the Federal Reserve’s annual rally in Jackson Hole later this week.

The world’s largest digital coin by market value rose 2.6% on Tuesday to hover around $21,600, though it has hovered widely below the $22,000 level since it started selling in mid-August. Other cryptocurrencies, including Ether, also rose, with an index of the 100 largest tokens adding around 2.3%.

And it comes as US stocks attempt to stage a comeback from Monday, when they saw their worst session since mid-June. are bracing for a hawkish tone at the Jackson Hole event after recent comments from Fed officials convinced many investors that the central bank will continue to tighten aggressively even in a slowing economy.

“As August heads for a weak close, market attention turns to this week’s Jackson Hole symposium,” Noelle Acheson, head of market intelligence at Genesis, wrote in a research note. “A key question on traders’ minds is whether the Fed Chairman will signal a potential reduction in the pace of increases, double his nominal commitment to lower inflation, or try to convince the market that the Fed can have its proverbial cake and eat it too,” she added.


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Cryptocurrencies have traded in tandem with US equities this year, as both have been influenced by the Federal Reserve’s interest rate hike trajectory. The correlation coefficient at 90 days of and the S&P 500, after weakening slightly in June, is again around 0.64, among the highest such readings in Bloomberg data dating back to 2010.

According to Arcane Research analyst Vetle Lunde, this year’s crypto bear market follows those of 2018 and previous years. This lasted more than 285 days, with down nearly 70% from its all-time high in November. The bear markets of 2018 and 2014 lasted 12-13 months, with peak declines of 85%.

“We don’t find a lot of value in speculative assets, especially cryptocurrencies, where there really isn’t any intrinsic value,” said David Spika, president and chief investment officer of GuideStone Capital Management. “It’s all based on speculation only.”


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According to Peter Tchir, head of macro strategy at Academy Securities, bitcoin is hovering near levels that would ensure that no “hodler” – or investor who buys and holds even in difficult times – has made money on purchases. in almost two years. “It’s a long wait to make money (or sit on big losses). FOMO is a big part of crypto trading, and we’re about to decline to levels where many might decide to take their money and run away.

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