Bitcoin: Dip or a deeper pit? [Video]
|Cryptocurrencies had an agitated weekend, with a 20% drop recorded in Bitcoin’s price on Saturday to as low as $42K per coin. Only half of the losses have been recovered so far. But the Saturday drop raised a big question for the crypto traders: is it an opportunity to buy the dip?
The weekend selloff in Bitcoin was likely the continuation of the heavy selloff in the US equity markets following a mixed US jobs report before the weekly close. The US economy added some 210’000 new nonfarm jobs in November, which was much less than 550K penciled in by analysts, but the participation rate improved, and the unemployment rate fell surprisingly to 4.2% from 4.6% printed a month earlier, and versus 4.5% expected by the market. For a second, investors didn’t know how to interpret the data!
All three major US indices fell, but Nasdaq suffered the most with almost 2% drop into the close.. The bloodbath in Chinese equities didn’t help.
We will be talking a lot about inflation this week, as the latest CPI data is due Fridy. Last week, the Federal Reserve (Fed) Chair Jerome Powell finally said that inflation is ‘not transitory’, and Fed action is needed to tame the pressure.
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