Bitcoin Price Floats Near $50,000. US Dollar Pushes Higher

05 Oct 2021 · 3rd Party Analysis

Bitcoin logo and USD Symbol together over a Candle chart background. Bitcoin Price Floats Near $50,000, US Dollar Pushes Higher

WRITTEN BY ThorFX

In Summary

  • The price of bitcoin spiked to a session high of $49,720 on Tuesday
  • The US dollar advanced against major currencies, continuing a period of strong gains

What’s Trading in the Markets?

The price of bitcoin rose toward the $50,000 milestone early on Tuesday. The renewed push to the upside arrived after a strong five-day period of gains. In more detail, bitcoin is aiming to conquer the $50K-mark for the first time since El Salvador rolled out the orange coin as legal tender.

In the early hours of the session today, the original cryptocurrency hit an intraday high of $49,720 per token. The price level was last seen on Sep. 7. That said, bitcoin has rallied over 20% over the past six days and is currently trading near $49,500 per token.

Meanwhile, the US dollar is staging a comeback after it declined broadly over the past few days. The American currency rose 0.3% against the Japanese yen, placing the USDJPY rate near 111.20. On the other hand, the EURUSD shed 0.2% early Monday to dive slightly below 1.1600.

Facebook Drops 5%

In stock market news, the Nasdaq Composite, a technology-driven index, slipped more than 2%. Moreover, losses were most notable in Facebook shares which dropped nearly 5%. The social media accumulated selling momentum after its platform, along with WhatsApp and Instagram, went offline. The outage was global and lasted for several hours before services were back online.

Brent crude, the international benchmark, hit almost $82 per barrel on Monday. The jump marked a 7-year high and arrived after OPEC said it does not plan to boost production.

Corporate-wise, Tesla shares rose 0.8% to $781.53 after the electric vehicle maker reported record deliveries for the last quarter. More precisely, Tesla delivered 241,300 vehicles to customers in the three months ending in September. The number was up from 139,593 vehicles delivered during the same quarter a year ago.

Dive Deeper

Financial markets on Tuesday remain fairly muted. Uncertainty around high inflation, rising interest rates and stimulus withdrawal cast a shadow over the market mood. On that note, investors have turned more defensive toward stocks. Furthermore, they have flocked to the US dollar as one of the most liquid financial products to own.

In Washington, Democrats are thinking about reducing the $3.5tn package in hopes that scaling back could boost its chances.

What to Expect?

As the week unfolds, traders and investors keep looking for the best way to position their portfolios. Several elements of the week are defining the shift in market sentiment. First, this is the final week before the earnings season arrives.

Third-quarter corporate earnings are bound to create trading opportunities and investors will be expecting them.

Second, as Friday approaches, traders eye the jobs report to get a glimpse into the health of the US economy. The nonfarm payrolls data on Friday will show how many new jobs were added in September. The event could cause increased fluctuations in the financial markets and individual assets like the US dollar and the euro.

Economic News Today (EST time)

Today’s economic news will start with the UK reporting its Composite and Services PMI data at 04:30 am. Later, the European Central Bank President, Christine Lagarde, will have a press conference at 11:00 am. To conclude the day, the Reserve Bank of New Zealand will deliver its interest rate decision at 09:00 pm.

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