“The yen’s weakness against the dollar has ensured increased risk appetite in the risk asset segment, supporting bitcoin. Derivatives trader Gordon Grant told The Block. This is how the specialist explained the rally of the first cryptocurrency by more than 8% after the Fed cut the key rate by 50 bp. p. On the night of September 20, quotations protested at $64,000, while after the decision of the Fed two days earlier they fell to $59,250. This […]”, — write: businessua.com.ua
The yen’s weakness against the dollar has ensured increased risk appetite in the risk asset segment, supporting bitcoin. This was stated by a derivatives trader, The Block Gordon Grant.
This is how the specialist explained the rally of the first cryptocurrency by more than 8% after the decline Fed of the key rate for 50 b. p. On the night of September 20, quotations protested $64,000, while after the decision of the Fed two days earlier, they fell to $59,250.
This movement took place against the background of falling prices JPY to the USD due to the strengthening of the carry trade, he noted.
According to the expert, bitcoin can be perceived both as a “reverse analogue of the dollar” and as a high-beta asset. In other words, digital gold appreciates when sentiment improves in risky instruments.
On Friday, the stimulus for a new wave of yen weakening was provided by the Bank of Japan’s decision to refrain from tightening monetary policy.
The Fed’s verdict could signal to the market that the economy is slowing, hinting at deeper issues that may not yet be apparent, 21Shares noted.
“It could potentially cause volatility. In the long term, Bitcoin and other digital assets have historically thrived in low interest rates,” the analysts explained.
Valentyn Fournier of BRN expressed caution, noting the potential for the first cryptocurrency to pull back to the $56,000 area, where he recommended strengthening longs.
We will remind, the ex-CEO of BitMEX Arthur Hayes noted the potential for the fall of stocks and other risky assets a few days after the Fed meeting on September 18. He based his forecast on the collapse of carry-trade positions in the yen due to the reduction in the difference in interest rates between the United States and Japan.
Earlier, the expert called the first cryptocurrency a more reliable safe-haven asset than gold due to the lack of national control. He predicted the market’s exit from the bearish side since September amid expectations of the launch of new stimulus in the US.
The source