Bitcoin retests $37K support, gold and stocks drop lower over Fed comments

The value of Bitcoin (BTC) bounced back from the lowest levels since mid-September to above $37,000. The value of the flagship cryptocurrency recovered by 10.5% and was trading above $37,000 at 12:30 PM EDT. The market is still down approximately 35% from its all-time high at the start of November.

The price of bitcoin has retested the $3700 mark and is currently trading at $3700. This comes after a recent statement from US Federal Reserve Chairman Janet Yellen that indicated she does not see the need for the central bank to raise interest rates as soon as expected next month. The comments from Yellen were enough to send the price of bitcoin down over 3% on the day as it dropped below $3700 for the first time since October 2015. In response to the comments, gold and stocks tumbled lower, with the price of gold falling by almost $45 and Dow Jones falling by over 200 points.

The price of bitcoin (BTC) fell a fraction to $37,365 today after bulls failed to recapture the $40,000 level. The further pullback comes amid a decline in the stock market and commodities after Federal Reserve Chairman Jerome Powell’s comments on future interest rate hikes and fears of rising inflation sent bitcoin and gold plummeting. Data from Cointelegraph Markets Pro and TradingView show that the price of BTC rose from $38,200 in early trading hours on Thursday to a high of over $39,500 by midday, before being pushed back to a low of $37,365 when the bears took control of the market. 4 hour chart BTC/USDT. Source: TradingView

Cash market entries

One of the signals in the race to lower the price of bitcoin on the 17th. June saw increased fund inflows into cash markets, leading some analysts to suggest that traders who failed to pull back near the highs took advantage of the lower highs to lock in their gains. #Bitcoin Here you can see a pretty stark contrast between recent fund inflows into cash and derivatives trading. Recently, the stain has increased significantly. One theory is that seat holders who didn’t sell the top are taking the opportunity to get out at a lower top pic.twitter.com/6SOI2uXHk8 – Tempting Beef (@tempting_beef) 17. June 2021 As the pullback intensified, the net flow of BTC to exchanges increased significantly and this selling pressure, along with the lack of buyers at the lows, kept bitcoin below $38,000. Bitcoin all net exchange rate flows. Source: CryptoQuant Bitcoin retests $37K support, gold and stocks drop lower over Fed comments While the recent influx of BTC to exchanges suggests a short-term downward trend, it is also worth noting that Whale wallets holding between 100 BTC and 10,000 BTC have increased their holdings by 90,000 BTC over the past 25 days, suggesting a more positive long-term outlook. Related: The Bulls want to pick up $40K before Friday’s $520M BTC option expiration.

Open interest in BTC options is rising

Another source to get a better idea of how funds are placed in the market is the open interest in BTC and Ether (ETH) options. According to Delphi Digital, open interest in BTC and ETH options has been declining since mid-May, but there has recently been a slight increase in open interest in BTC options. For Ether, this number remained unchanged, suggesting that traders are instead trying to position themselves for a BTC move. Change in open interest for BTC and ETH options. Source: Delphi Digital Bitcoin retests $37K support, gold and stocks drop lower over Fed comments Delphi Digital also said that the recent momentum in bitcoin and gold prices has reignited the debate over the ability of both to act as safe havens, as investors increasingly view gold as a key inflation hedge, meaning that a rise in inflation could have a negative impact on BTC sentiment. Deviation of the BTC price from the gold price. Source: Delphi Digital Bitcoin retests $37K support, gold and stocks drop lower over Fed comments With both assets reacting negatively to Powell’s comments, it is possible that the correlation between BTC and gold will lead to a resurgence of the theory that BTC has become a safe haven in 2019.

Altcoins are losing popularity

The overall altcoin market was in a higher trend on the 17th. June was a down month, with the lack of optimism taking a heavy toll on most chips. Daily indicators for the crypto-currency market. Source: Coin360 Bitcoin retests $37K support, gold and stocks drop lower over Fed comments Notable exceptions to the market stagnation include a 34% rise in XinFin Network (XDC) following its partnership with Flare Finance and a 32% rise in NuCyper (NU), which benefited from a recent merger with Project Keep to form Keanu CAD. As can be seen in the chart below, the announcement of the merger between NuCyper and Keep was made by Cointelegraph Markets Pro’s NewsQuake™ service on June 15. and was followed by a rise in the VORTECS™ score to a high of 74 on June 16. accompanied by about 15 hours before the altcoin rose 44%. VORTECS™ score (green) compared to NOW price. Source: Cointelegraph Markets Pro Bitcoin retests $37K support, gold and stocks drop lower over Fed comments The total cryptocurrency market is now $1.568 trillion and bitcoin’s share is 45.1%. The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. So you need to do your own research before making a decision.

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