Friday, 12 March 2021

Cryptocurrencies Weekly Review by Money Life Research

MARKET VIEW


Weekly changes: BTCUSD +9.05%


After hitting a weekly high of 52,655 USD, bitcoin declined towards 46,6000, showing high volatility. Nevertheless, the first cryptocurrency rebounded by the end of the week amid a broader recovery in risk assets after a report showed the U.S. added more jobs than forecast last month.


The market is in the correction stage now after the BTCUSD updated the maximum historical value above 58,300 USD on February 21.


KEY POINTS


The current pressure on bitcoin is closely related to the head of the Federal Reserve's Jerome Powell speech. He said that the economy had not reached its inflation targets, and therefore there is no need to tighten monetary policy. This, in turn, has increased the flow of capital from risky cryptocurrency assets to traditional markets.


MicroStrategy has added another 205 bitcoins worth 10 million USD to the investment portfolio. Now, MicroStrategy owns 91.06 thousand bitcoins, which are worth 4.3 billion USD at the current exchange rate.


The current price changes structure hints at the risk of a correction to the level of 40,000 USD.

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