Bitcoin and ether were down slightly on Thursday, as traditional markets rose due to additional stimulus from the US Federal Reserve and the Bank of England.
In the past 24 hours, bitcoin (BTC) fell 1% Thursday afternoon in New York and ether (ETH) fell 1.2%.
Notable gains on the big CoinDesk board include the dash (DASH) up 8%, the zcash (ZEC) in the green by 8% and the bitcoin gold (BTG) up by 4%. Digital assets in red include bitcoin cash (BCH) down 4%, tron (TRON) 2% and cardano (ADA) 1%. All 24 hour price changes are at 8:15 p.m. UTC (4:15 p.m. EDT) Thursday.
In traditional markets, the Nikkei 225 index in Asia closed flat, down 0.04%. Japanese central bank governor Haruhiko Kuroda said Thursday that the uncertainty over the economic outlook for his country was “extremely high”.
The FTSE 100 in Europe ended the day up 2.9% as the Bank of England extended an existing agreement to finance the British economy.
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In the United States, the S&P 500 closed the New York trading day up 1.4%. The Federal Reserve has announced new stimulus measures to contain the economic fallout from the coronavirus pandemic.
The central bank has rolled out a $ 2.3 trillion program, including a $ 600 billion “Main Street Lending Fund” to support small and medium-sized businesses and $ 500 billion in loans to states and municipalities .
The Fed also expanded the size and scope of the primary and secondary market credit facilities and the asset-backed securities loan facility to support up to $ 850 billion in credit.
After the Fed announced the new measures, bitcoin rebounded from an intraday low of $ 7,100, quickly reversing a sharp decline. It is currently trading in a lateral range around the $ 7,200 level.
Stocks, especially in the United States, are posting gains this week. But we can doubt that it will last. “US. Stocks will still be in a very precarious position in April, with the ongoing pandemic far from over,” said Toby Wu, senior analyst for eToro multi-asset brokerage.
Since it was beaten in mid-March, bitcoin has been climbing steadily, fueled by predictions that injections of new funds from governments and central banks around the world will eventually boost inflation. Bitcoin is often touted as a hedge against inflation and many analysts say it will somehow benefit from the unconventional methods adopted by the Fed to combat the slowdown caused by coronaviruses. If it is a risky asset, as skeptics see, bitcoin is expected to rise with other high yield instruments; if it is truly a follower’s paradise, it should attract investment for this reason.
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Perhaps supporting inflationary concerns, foreign exchange traders abandoned the US dollar on Thursday, sending the dollar index, which tracks the value of the greenback against other major currencies, to 99.50 against 100.00. Elsewhere, gold, a classic asset and protection against inflation, is currently trading at 2.4%.
So why doesn’t bellwether cryptocurrency climb on the latest intervention announcements? Profit taking was the name of the game on Thursday, market participants said.
“Cryptography is expected to be higher based on these large movements in conventional markets. However, we have seen net sales today. Traders are taking profits, “said Max Boonen, CEO of B2C2, a London-based OTC market maker.
This sale appears to keep bitcoin in the $ 7,200 range.
“The rally of the past few weeks seems to have temporarily stopped at around $ 7,400, but the bullish outlook for bitcoin remains intact for the next 12 to 12 months,” said Greg Cipolaro, co-founder of Digital Asset Research, a company cryptocurrency analysis.
The argument for bitcoin is “probably reinforced by the last action of the Fed,” he said during a chat on Telegram.
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