Bitcoin "bottom" fools nobody
In a pause from its sell-off, the pair followed United States equities higher on the Wall Street open, hitting $21,700. The S&P 500 gained 1.4% after the opening bell, while the Nasdaq Composite Index managed 1.6%.
The renewed market strength, commentators said, was thanks to the majority already pricing in outsized key rate hikes by the Federal Reserve, due to be confirmed on the day.
Nonetheless, it was crypto taking the worst hit in the inflationary environment, Bloomberg chief commodity strategist Mike McGlone noted. In a tweet, he contrastedBitcoin and altcoin performance with skyrocketing commodities, notably WTI crude oil, futures of which now traded at almost double their 200-week moving average.
"Unprecedented Crude Spike vs. Bottoms in Bitcoin, Bonds, Gold — Crude oil futures' historically extreme stretch above its 200-week mean is ample fuel for inflation to spike, consumer sentiment to plunge, Federal Reserve rate hikes to accelerate and an enduring hangover," he argued.
Despite suppressed price action, many were unconvinced that Bitcoin could meanwhile sustain even the low $20,000 zone much longer.