Fundamentals and expected events: week 19
Crypto markets: Bitcoin and the overall crypto market continues to weaken in correlation with declines in technology titles within the major US indices. Sales are driven by persistent concerns about high inflation and looming stagflation, rising dollar rates, and especially disappointing corporate results for some technology sector leaders. There have been warnings of a bubble bursting across the sector, which includes digital currencies. In the digital currencies sector alone, there were several negative news that led, among other things, to a drop in the Fear and Greed index to Extreme Fear at 11 points. Bitcoin marked for the first time in eight years a first time of six consequtive red weekly candles. Total market capitalization dropped below 1.6 trillion USD. Over 69,000 traders saw more than $260 million was liquidated in the past 24 hours.
Stock and commodity markets: US stocks are in the red again. The S&P 500 index notched up its fifth weekly loss in a row, making it the longest losing streak since 2011. European stock markets continued their declines from last week. Inflation concerns and worries about the impact of rate hikes persist. The energy sector is negatively affected by the highly volatile movements in oil prices. Data from China has confirmed the slowdown in the Chinese economy and China is at risk of missing its target for this year. Continued lockdowns of China’s largest ports are not helping the situation either. The euro is weakening again against the dollar. Oil is trading towards USD 110 per barrel Brent. Gold is weakening significantly in correlation to the strengthening dollar.
Fundaments and important events: In the coming week, the main focus will be on inflation data from both the US and China for April, followed by Fed’s May FOMC meeting and a series of Fed statements and US consumer sentiment data. China will release a range of data including trade data, which will be influenced by lockdowns due to COVID-19 disruptions. UK GDP data for March and Eurozone industrial production data are also coming this week. President Zeman will appoint a new CNB governor on Wednesday. Fitch Ratings has downgraded its outlook for the Czech Republic for the first time since November 1998. Analysts are beginning to warn of impending stagflation in the EU.
Cryptomarkets and marketcap: week 19
BTC / USD
ETH / USD
Disclaimer: This is not an offer for concluding a contract. Trading cryptocurrencies is a highly risky business and as such you are the only person bearing the risk and responsible for your own decisions. Do not engage in trading unless you do your own research and are fully knowledgeable of the risks.