Ipek Ozkardeskaya
Swissquote Bank Ltd
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.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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