Bitcoin (BTC) took a pummeling on Monday by tumbling 4% throughout the trading session in response to a surge on the US dollar.
US manufacturing PMI data came in hot, causing the brief rally on the greenback and sending the BTC/USDT pair as low as US$27,670.
Then came the inevitable brokering of a deal to sell struggling US regional lender First Republic North to JPMorgan Chase & Co (NYSE:JPM). in a US$10.6bn takeover.
Edward Moya, senior market analyst at Oanda, surmised that this actually fuelled confidence in the traditional financial system, possibly to the detriment of bitcoin, which found favour in recent times of TradFi turmoil.
“Bitcoin is struggling here as Wall Street grows confident that the banking crisis risk has been removed from the table. It is looking like the US banking system has a playbook to deal with the next banking crisis when it emerges, which is somewhat dampening the case for cryptos,” wrote Moya in an email.
Long-bitcoin liquidations smashed above US$50mln as a result of the dip.
A late-session rebound managed to pull the pair above 28k by the end of the day, where it has managed to stay this Tuesday morning, albeit only just.
Though a bad way to start the new month, bitcoin has managed to end in the green for the past three months, a pretty rare occurrence for the world’s largest cryptocurrency.
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