Market Pulse: Bitcoin Bounces Near Highs as Lagarde Slams the Euro

    0
    17

    The expansion of fiat money has been a driver for Bitcoin this year. Central banks are creating more currency to overcome the coronavirus pandemic, while BTCUSD’s mining rewards were halved in May. This may create an increasingly positive supply/demand balance in favor of the biggest cryptos.

    There was a similar catalyst today when European Central Bank President Christine Lagarde hinted at stimulus in December. It’s a change of course for the ECB, which previously embraced “tight money.”

    BTCUSD started rallying at the time of her comments around 8:30 a.m. ET today. There were other catalysts, like strong GDP and initial jobless claims.

    The move is noteworthy because it occurs above the previous daily closing high of $12,822 from June 2019. BTCUSD has consolidated in that range this week despite a selloff in the S&P 500. That kind of relative strength is interesting, especially when it happens amid growing fiat supply and widening institutional adoption.

    Advertisement #1 Trading Platform Technology - 8  years running!