The 26th day of April 2021 may go down in the history of the cryptocurrency market due to the largest single-day increase in the price of bitcoin expressed in US dollars. The cryptocurrency market thus saw an awakening after a disastrous series of declines.
The price of bitcoin, which reached above $64,000 on the debut day of Coinbase, the largest US cryptocurrency exchange, collapsed to fall for less than two weeks to the vicinity of $47. In dollar terms, it was the biggest correction this year, while in percentage terms, it was comparable to the one that occurred in January or February. Meanwhile, yesterday's rise from $47,000 to $54,000 could be considered the biggest one-day jump in the world's largest cryptocurrency price. In percentage terms, on the other hand, it was the largest since February 7, 2021. The ETH/USD exchange rate could also see the biggest increase in its history - from around $2160 to $2540. Today, in turn, ethereum is likely to have the highest close of the day in history.
Rates unchanged in Japan
Outside the cryptocurrency market, investors may pay attention to the actions of central banks. Today, the Bank of Japan left its key short-term interest rate unchanged at -0.1 percent and maintained its target for the yield on 10-year Japanese government bonds at around 0 percent. The central bank lowered its consumer inflation forecast for the current fiscal year from 0.5 percent to 0.1 percent due to downward pressure on spending on services in its quarterly report. Policymakers also warned of lingering risks to the economic outlook as the COVID-19 pandemic continues to hurt consumption. The projected GDP growth rate for the current fiscal year was little changed at 4 percent, and the central bank reaffirmed that it would not hesitate to take additional easing measures if necessary.
Will the Fed reduce its asset purchase program?
Today marks the beginning of a two-day meeting of the Federal Reserve. Its outcome will be known tomorrow evening in the form of a statement for the interest rate decision and a press conference by Jerome Powell, Fed chief. It seems that the key will be the market's search for an answer to the question whether the Fed intends to reduce its asset purchase program, and thus the dynamics of balance sheet growth. The history of tapering in the US seems to show a correlation between the pace of central bank asset growth and the pace of stock market indices. Thus, any hints of tapering may hamper bulls on Wall Street, while their absence may pave the way for an unlimited bull market, with the S&P 500 contract hitting new records today.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
77.46% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade this news from Conotoxia Ltd. platforms
Go to your account
