Sleepy Action in Bitcoin Persists



  • Investors around the world continue to focus on the latest Covid-19 numbers.
  • Global monetary policy sees little change.
  • Bitcoin (BTC) picked up where it left off last week and traded in a sideways manner.

Bitcoin (BTC) traded in an apprehensive manner this week, mirroring the action in global equity markets. Concerns about a second wave of the Corona Virus are the most significant known worry for investors at this juncture. Meanwhile, central bankers around the world remain in an accommodative mood. In reference to stimulus measures Jerome Powell warned, “It would be a concern if Congress were to pull back too quickly”. On the other side of the globe, The Bank of Japan (BOJ) announced further monetary easing, causing stocks to soar.

This Week’s Topics

  • Asset management firm Galaxy Digital and crypto exchange operator Bakkt have joined forces to launch trading custody services geared toward institutional investors.
  • Open interest on Bitcoin (BTC) options surged ten-fold in the last month on the Chicago Mercantile Exchange (CME).

Next Week’s Market Forecast

Moving forward, investors have two big questions: Is a second wave of the Corona Virus coming? Will easy monetary policy around the globe cause inflation? Recently some of the most recent Corona Virus numbers have ticked up in the United States and globally. Inflation has not reared its head yet, but if it were to occur, cryptocurrencies are a place investors hedge.

Bitcoin (BTC) has now been range-bound for six weeks. After a big run from $4,000 to $10,000, the price action has been frustrating for both bulls and bears. The trend is still pointing upward, but bulls have not been able to push and hold BTC above the $10,000 resistance level.

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