(BTC) Bitcoin’s Price Tanks Along With Equities. U.S. Stock Market Awaits CPI Report, Poor Performance From The FTSE 100.
Rebecca Duthie 09.05.2022 18:18
FTSE showing bearish signals in the current market.
Future of the US stock market awaiting U.S CPI report due on Wednesday.
Bitcoins price fall’s link to the broader market.
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FTSE 100 showing poor performance:
The FTSE is the Financial times Stock Exchange listed on the London Stock Exchange. This exchange has tanked more than 2% today, given the size of the exchange, it is a big change.
This negative investor sentiment towards the FTSE comes as a result of overall negative investor sentiment after the Bank of England's (BoE) forecast announcements last week. When the BoE delivered an unfavorable announcement for the second quarter of the year, the UK market tanked amidst poor investor confidence in the government's ability to fight against inflation and the looming recession.
FTSE 100 Daily Price Chart
Future of the US Dollar.
Despite the hawkish Fed and the dovish ECB, the market sentiment for this currency pair sits at mixed. Investors are starting to show concerns around where the U.S economy is headed. Concerns around rising prices, inflation, soft corporate earnings growth, the supply chain bottlenecks and the increasing concerns around the looming recession, are all causing investors to hold off on risk. The U.S. stocks have fallen today, with the S&P 500 falling around 2.5% and Nasdaq falling around 3%.
Investors will watch in anticipation as the U.S releases their CPI report during the trading day on Wednesday. Investors will look for cooling prices and inflation, if this happens, there could be a relief on the stock market, if not, we could see the stocks fall even more.
Bitcoin Price Tanks.
The price of Bitcoin has tanked today, hitting its lowest price since July 2021. The reality is that the effects of tightening of monetary policy have been felt throughout all the stock markets, including the cryptocurrency market.
Analysts warned investors about the possible drop in the price of Bitcoin if global economic market performance continued to sour.
With the price of Bitcoin down more than 6% today the fall comes in line with the tanking global equities amidst geopolitical tensions, supply chain bottlenecks and inflation pressure.
BTC Price Chart
Sources: dailyfx.com, finance.yahoo.com