Following a recent dip, Bitcoin is now flirting again with an all-time-high, and everyone’s watching to see what will unfold. Many believe we will enter a new phase of price discovery, which has proven to inflate the market by multitudes of magnitude. However, before we get there, it has been reported that China has asked local governments to shut off power to Bitcoin miners. Is it a coincidence that this news spread when BTC is rejected near the all-time-high?
beincrypto.com China bans Bitcoin mining
In other markets, Equities hit a new all-time high, on the promise of easy money. This follows the nomination of Janet Yellen, Yellen is a market dove.
“Former Federal Reserve chair Janet Yellen being nominated to Treasury Secretary in President-elect Joe Biden’s cabinet.” Yellen has the reputation of a market dove.
Precious Metals have been in a downtrend, while, coincidentally, another mainstream bank was fined for rigging the precious metal market. The action for precious metals would seem illogical at first glance, as most would expect that if the DXY drops, which it has, bringing the USD near 0.90, gold and other metals would react. That is, until we recognize that a fine for rigging a market has become a cost of doing business for mainstream banks.
Economist.com Market Manipulation
All in all, Cryptocurrencies have inflated with the stock market, as the US dollar looks exhausted, possibly due to, COVID stimulus and low interest rates. So, if we expect that the dollar will continue to be devalued, investors will take on risk.