Bitcoin Dips Below $60,000 amid Weak Momentum, US Dollar Rises

27 Oct 2021 · 3rd Party Analysis

Vector of a Balance Scale with a USD bag and a Bitcoin bag showing USD up and BTC down. Bitcoin Dips Below $60,000 amid Weak Momentum, US Dollar Rises

WRITTEN BY ThorFX

In Summary:

  • Bitcoin price dips below $60,000 as crypto traders retreat after record highs
  • US dollar grinds higher against the euro and the Japanese yen ahead of US GDP data

What’s Trading in the Markets?

Bitcoin, the largest cryptocurrency in the market, eased from record highs as traders paused their buying to digest recent developments. The orange coin dipped to levels below $60,000 in the early hours of Wednesday’s session.

Furthermore, crypto backers attempted to scoop up the discounted token but buying momentum faded at least in the morning hours. Still, bitcoin has not yet been able to rise after Monday’s modest gains. In more detail, the leading crypto asset is lower by roughly 5.5% over the past two days.

That said, the Ethereum coin also moved lower in the early hours of today’s session. Ether, the second-biggest coin, traded above $4,200 but dropped near $4,000. In other words, the digital asset lost about 6% in the past few hours after. Prior to the decline, Ether hovered less than 2% from its record set in May. Back then, Ether spiked to a session high of $4,380 per token.

Against that backdrop, the cryptocurrency market on Wednesday is hovering below $2.6 trillion market capitalization. The all-time high, on the other hand, was achieved last week when the entire market was worth nearly $2.7 trillion.

US Dollar Advances Against the Euro, the Yen

In the meantime, the US dollar is trading near a multi-year low against the euro. More precisely, the EUR/USD has been consolidated near 1.1650 to 1.1500 over the past four weeks. After a week of US dollar strength, the euro is now gyrating near $1.1600. Even though the pair is slightly higher on the day, the euro is still pressured in the short-term and the long-term.

On the flip side, the dollar has been trying to recapture its gains against the Japanese Yen. After a solid month of upside momentum, the USD/JPY slipped last week to levels near 113.00. Presently, however, the greenback is trading above 114.00 against a weaker Japanese Yen.

Dive Deeper in the Financial World

In the stock market, US equities peaked at a new all-time high Tuesday. A modest move to the upside was enough to push the S&P500 and the Dow Jones Industrial Average to closing records. Despite challenges for the economic outlook, record-breaking quarterly results from Big Tech powered the broader equity market.

On that note, Microsoft, Google’s Alphabet and Twitter reported earnings on Tuesday that surpassed analyst estimates.

What to Expect in the Markets?

Furthermore, Apple and Amazon are slated to report their financial figures on Thursday. Both technology heavyweights are expected to reveal strong results for the quarter ended September.

Economic News Today (EST time)

Today, market participants will keep an eye on the central bank of Canada. The Bank of Canada will announce its interest rate decision at 10:00 am. It will be followed by a press conference. The data could increase the volatility in the forex market and traders will be looking to ride out the volatility.

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