Cryptocurrencies left out of risk-on move
Sea of red washes over cryptocurrencies
This morning stocks and precious metals have rallied in rejoicing at news that Trump has once again decided to hold off on striking Iran. But cryptocurrencies have been left out of the general excitement, and now look at risk of tipping over into a fresh deep correction. Cryptocurrencies stand or fall on momentum, but the sellers appear to be getting the upper hand once more. The recent selling in tech stocks has dimmed the appeal of this previously hot group, but dip buyers appear to be returning in droves, further draining the liquidity pool for bitcoin, ether and others.
What we’re watching – Iran and yet more earnings
The earnings calendar this week has much less jammed into it than the previous trading week, giving markets a breather for the moment. But while Michael Saylor may have shut down suggestions that Strategy is poised to sell more bitcoin, more price declines will intensify the outflows seen lately in cryptocurrencies, especially if the chip and AI trade is poised to shake off the selling of the past month or more.
Author
Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.
