Consumer confidence falls in the U.S. and cryptocurrencies soar

in hive-138698 •  2 years ago 

This CB data is taken by speculators to reinforce the thesis that the Federal Reserve (Fed) could relax its interest rate hike policy.

Cryptocurrencies traded higher after US consumer confidence fell. Pepperstone's Crypto10 index, was up more than 4% after the data was released. The gauge opened the day at 6,372 points and was trading as high as 6,661 points. This indicator, which tracks the world's top 10 cryptocurrencies, confirmed a support zone and was heading for a resistance zone at 6,842 points. Crypto10 reflected the market situation of the crypto sector.

precio-crypto10.jpg

Pepperstone's Crypto10 indicator, also confirmed the cryptocurrency price's exit from a descending triangle figure. The indicator broke out of the downtrend that had been developing since last August 15. Another factor that also added to the demand for crypto assets was the expectations of earnings announcements from major U.S. technology companies. Shares of companies such as Microsoft and Alphabet were up 0.6% and 1.2% respectively ahead of the announcements. Apple and Amazon were also rising.

US consumer confidence data.

The yield on 10-year U.S. Treasury bonds fell to a low of 4.06%. These factors also weakened the dollar. Once the US consumer confidence data was released, cryptocurrencies benefited. The DXY index fell 0.95% to 110.90 points. Thus, the dollar also marks more than a week of retreat from the high of 114.70 points.

The Conference Board (CB) data, which tracks US consumer confidence, came in worse than expected. Economists' consensus expected it to end at 106.5 points and it was published at 102.5 points. This indicator fell again compared to the previous month, when it had registered 107.8 points. US consumer confidence has been falling since June 2021, since then, inflation began to rise in the US economy.

Cryptocurrencies on the rise, dollar on the decline

This CB data, is taken by speculators, to reinforce the thesis that the Federal Reserve (FED), could relax its policy of increasing interest rates and monetary tightening aggressively. The drop in consumer confidence in the US is negative for the dollar and positive for cryptocurrencies. The weakness of the dollar allows assets that are counterparties, such as cryptocurrencies, to rise in price. Speculators believe that the Fed and the world's central banks will not be able to maintain the restrictive policy for long. The reason is that it would be producing strong damages to the economy.

For this reason, some investors may be taking early positions and buying cryptocurrencies at very low prices.

This is how cryptocurrencies moved

Bitcoin (BTC) registered a high of $20,196.56, up 4.22%. Ethereum (ETH) soared strongly, to highs of $1,512.81. ETH was posting a 10.10% gain after noon. The cryptocurrency, from the world's first exchange Binance Coin (BNB), traded at a high of $289 and was up 5.11%.

The Bitcoin-secured smart contract cryptocurrency Stacks (STX) also rose quite strongly by 3.98%, with a maximum price of 0.3137 dollars. Among other altcoins, such as dogecoin (DOGE), it was up 6.39%. Polygon's MATIC advanced 4.49%. The cryptocurrency, polkadot (DOT), produced a rally of 9.12%. The LIDO protocol token was up 10.99%.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!