Will Bitcoin Steal Market Share From Gold’s “Store Of Value”? [Video]
Market moods deteriorated in US trading yesterday, and the latest data showed 4.5 million Americans left their jobs in November. 4.5 million is a lot of job losses, but there is nothing the Federal Reserve (Fed) can do about it because the root cause of the problem is not the lack of vacancies. Today’s ADP data should reveal that the U.S. economy created 400,000 private jobs in December. It would be less than a tenth of what was lost in November. So the question is, do jobs data still matter?
The US stock indices retreated yesterday, and yesterday’s price action was primarily driven by expectations of higher interest rates.
In forex, the US dollar remains strong, and this strength pushes EURUSD below 1.13. The sterling bulls, however, are defending their territory well against a significantly stronger US dollar and a surge above 100-DMA, near the 1.3560 mark, should lay the groundwork for a bullish reversal. in the medium term in the cable.
In cryptocurrencies, appetite for Bitcoin remains contained near the 200 MA and the coin is testing the bottom of the December horizontal channel base, which is near the $ 45,000 level. One of the explanations for the lack of appetite is the rise in US yields, which is putting visible downward pressure on the price of cryptocurrencies.
And gold is now trading above its 50, 100 and 200-DMA, but the positive attempt at the $ 1,830 level has remained short lived. It will be interesting to see how the rise in US yields, which increases the opportunity cost of holding non-interest-bearing gold, plays out over the coming months for gold investors.