After an overall positive performance from cryptocurrencies over the last few weeks, boosted in part by bitcoin reaching a new all time high along with the launch of the first ETF on bitcoin futures, we are seeing a significant pullback across the board. Bitcoin has dropped below the key $60,000 level reaching the lowest level in two weeks and has dragged the rest of the market down with it, leaving few exceptions as the crypto market cap fell back under $2,5 Trillion. While altcoins have had even larger reactions with many falling between 10-15%, this appears to be a somewhat expected correction as the market was in an extended upward move despite bitcoin trading sideways in the last few days. The situation remains uncertain, but it seems that Bitcoins performance continues to be crucial for the overall market and any significant moves for the main cryptocurrency will be amplified for the rest of them.
FTSE100 encounters resistance ahead of UK budget announcement
While the overall performance of the FTSE100 has echoed that of its European counterparts, the UK index has encountered resistance around the 7250 handle after rising over 1% in the last week. Investors await today's key budget announcement from chancellor Rishi Sunak where he will be outlining the post covid economy budget which is aimed at assisting in the economic recovery after the pandemic. The impact of such an announcement could vary depending on the scale of the measures implemented but it will be essential to reassure investors and consumers about the ongoing rise in inflation, supply chain issues as well as how the government plans to deal with unemployment.
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