BTC, Stocks Muted as Traders Weigh Economic Outlook

09 Dec 2021 · 3rd Party Analysis

Bitcoin, Stocks Muted

WRITTEN BY ThorFX

In Summary:

  • Bitcoin price remains stable near $50,000 after three days of solid gains
  • Stocks finish modestly higher as investors weigh the economic outlook

What’s Trading in the Crypto Market?

Bitcoin, stocks, and the wider financial markets finished Wednesday’s session largely seeking for direction. The cryptocurrency market went through a quiet trading session. Similarly, stocks on Wall Street hugged the flat line.

In detail, the price of bitcoin remained stable near $50,000 per token as crypto traders were defensive after three days of uninterrupted gains. More precisely, the world’s biggest coin advanced about 20% since Sunday, after an abrupt drop on Saturday.

To this end, digital asset supporters are confident the rally will continue. While a new catalyst is expected to propel crypto prices higher, traders show an increased appetite to buy the dip.

Dive Deeper in the Financial World

In stocks and currency pairs, Wall Street equities gyrated near the flat line during the entire session on Wednesday. Right at the end, the Dow Jones Industrial Average managed to cross from red to green. As a result, all three indexes finished the day in positive territory.

The Nasdaq Composite gained over 0.6% as technology stocks were among the biggest winners. Apple shares jumped more than 2.2% and closed at a new all-time high of $175.08.

In addition, Tesla stock rallied in the final hour of trading and posted a daily gain of 1.6% to $1,068. 96. Also, Facebook parent Meta Platforms soared 2.4% on the day.

In contrast, Amazon and Microsoft were not able to post any gains as they finished the day virtually flat.

What’s New in Forex Markets?

Over to currencies, the GBP/USD pair slipped as much as half a percent on Wednesday. The catalyst for the drop was Prime Minister Boris Johnson’s press conference. In it, he announced the UK is entering into further restrictions to curb the spread of the Omicron variant.

The new measures will include mandatory masks for indoor activities, vaccine passports for large venues, and an order to work from home. In turn, the update led to a selloff in the UK currency across the board.

The GBP/USD dropped to a one-year low of 1.3160. Further, the GBP/CAD and the GBP/JPY lost about half a percent each but later pared their losses. In contrast, the GBP/CHF fell and closed the trading session lower by slightly over 0.7% at 1.2160.

What to Expect in the Markets?

Today, financial markets will be looking for fresh data on the US jobless claims. Initial filings for unemployment will highlight the pace of labor-market recovery. Later in the week, US inflation will reveal if consumer prices have eased from their multi-year highs.

Next week, the US Federal Reserve gathers for its last regular policy meeting of the year. Fed Chair Jerome Powell is set to discuss the steps toward removing monetary support and raising interest rates sometime in 2022.

Economic News Today (EST time)

The US initial jobless claims arrive today at 08:30 am. The report could create heightened volatility in forex and commodity markets, presenting trading opportunities for day traders.

Venture Through the Realms
With ThorFX

Become an Affiliate