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Bitcoin Price Reacts to the Fed’s Decision to Buy Individual Corporate Bonds

Bitcoin Price Reacts to the Fed's Decision to Buy Individual Corporate Bonds

On Monday, the Federal Reserve announced that they will increase their spending to curtail corporate debt by purchasing secondary market bonds. The goal of the Fed is to create a portfolio filled with corporate bonds that meet their standards. The Federal Reserve launched their Secondary Market Corporate Credit Facility in March as a response to […]

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Bitcoin Price Reacts to the Fed's Decision to Buy Individual Corporate Bonds

On Monday, the Federal Reserve announced that they will increase their spending to curtail corporate debt by purchasing secondary market bonds. The goal of the Fed is to create a portfolio filled with corporate bonds that meet their standards.

The Federal Reserve launched their Secondary Market Corporate Credit Facility in March as a response to the COVID-19 crisis. The program has the ability to buy 750 million dollars of corporate credit. It began with the purchasing of ETFs, now they are expanding the reach of the program in order to “support market liquidity and the availability of credit for large employers.”

During a CNBC Market Alert, Rick Santelli described the Fed’s move to buy corporate stocks as a ‘biggie’. Santelli went on to say that the stock market could react well to the announcement.

“My guess is you could see a little tail wagging the dog. You might see the indexes like LQD and HYG move up a little bit and that should buoy stocks to some extent.”

Stocks have rebounded following the announcement and are coming off the worst week for in three months, the Crypto market is also flashing immense green with bitcoin currently at $9,562 after plunging to $8,900 in the early hours of yesterday.

Many critics in the cryptocurrency space claim these actions lower the value of the dollar and falsely inflate many stocks and other assets.

Bitcoin rose out of the economic crash suffered last decade and the humongous corporate bailouts that followed. The idea was to take the enormous bailout powers away from central governments.

And now the maturing and robust community is claiming “I told you so” as governments around the world bail out big businesses. 

CNBC Bitcoin commentator Ran Neuner criticized the Fed as well. 

Cryptocurrency expert and entrepreneur Dan Held checked in to express his belief that the public is turning to BTC in the wake of the Fed’s moves. He quoted a study that claims people are starting to trust bitcoin over the big banks.

As the public continues to see central banks and governments constantly pump new money into the economy, the use of Bitcoin and other cryptocurrencies will only become more favored. And of course, there will be some long time Bitcoin fans to say “I told you so” louder and louder as long as the Federal Reserve and other central banks continue to print new billions.

Source: https://zycrypto.com/bitcoin-price-reacts-to-the-feds-decision-to-buy-individual-corporate-bonds/

Blockchain

TA: Why Bitcoin Must Clear $19.3K To Start A Fresh Rally Towards $20K

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Bitcoin price remained in a range above the $18,500 support against the US Dollar. BTC is trading above $19,000 and it could start a strong surge if there is a clear break above $19.3K

  • Bitcoin is currently holding the $18,800 and $19,000 support levels.
  • The price is facing a major resistance near $19,300, but it is above the 100 hourly simple moving average.
  • There is a major contracting triangle forming with resistance near $19,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a strong rally if there is a clear break above the $19,300 resistance zone.

Bitcoin Price is Stuck In Range

Yesterday, we discussed the importance of the 100 hourly simple moving average and $18,800 for bitcoin price. BTC did find a strong support near the 100 hourly simple moving average and there was no downside break below the $18,500 support.

The price seems to be trading in a broad range above the $18,500 and $18,800 support. The last swing low was formed near $18,117 before the price climbed above the 50% Fib retracement level of the key downward move from the $19,957 swing high to $18,117 swing low.

The price is now facing a major resistance near $19,300, but it is above the 100 hourly simple moving average. It seems like there is a major contracting triangle forming with resistance near $19,300 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

The triangle resistance is close to the 61.8% Fib retracement level of the key downward move from the $19,957 swing high to $18,117 swing low.

Therefore, a close above the triangle resistance and $19,320 could open the doors for a larger increase. The next key resistance is near the $19,500, above which bitcoin might test the $20,000 zone.

Downside Break in BTC?

If bitcoin fails to clear the $19,300 resistance level, there is a risk of a downside break. An initial support is near the triangle lower trend line at $18,800 and the 100 hourly simple moving average.

A downside break below the $18,800 support level could push the price towards $18,500. Any more losses may possibly spark a sharp decline towards the $18,000 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.

Major Support Levels – $18,800, followed by $18,500.

Major Resistance Levels – $19,300, $19,500 and $19,800.

Source: https://www.newsbtc.com/analysis/btc/bitcoin-must-clear-19-3k-to-start-rally/

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Chainlink recovery hampered under $14.5 but these key support levels hold the fort

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  • Chainlink holds above the critical support provided by the 50% Fibo in conjunction with the 100 SMA.
  • LINK/USD could resume the uptrend as long as the price reclaims the position above $14 and holds the 50% Fibo support.

Chainlink’s upside recently hit a wall amid the recovery from the Thanksgiving Day crash to $11. Several barriers were pushed into the rearview but LINK failed to sustain gains above the stubborn resistance at $14.5. Meanwhile, it is still difficult to sustain the uptrend, now that the price slipped under $14.

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Chainlink holds above critical support

At the time of writing, the decentralized oracle price feed token is trading at $13.9. Immediately on the downside, the 50% Fibonacci level is providing support. Additionally, the 100 Simple Moving Average on the 4-hour chart, adds credibility to the support.

Holding anchor above will cement the bulls’ position in the market while setting up Chainlink for a price action eyeing $18 in the medium term. As mentioned earlier several resistance levels are likely to delay the recovery, including $14.5, $15 as well as $16.

LINK/USD 4-hour chart

LINK/USD price chart
LINK/USD price chart by Tradingview

On the other hand, trading under the 50% Fibo and the 100 SMA might trigger massive sell orders. If enough volume is created, LINK would be forced to seek balance at the 50 SMA and the 38.2% Fibo. The bearish outlook has been reinforced by the Relative Strength Index after stalling slightly above the midline.

In case of extended declines, the 200 SMA is in line to cushion Chainlink from a massive drop. However, last week’s support at $11 would be the last resort before LINK enters into a downtrend with the potential of refreshing levels under $10.

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Chainlink intraday levels

Spot rate: $13.9

Relative change: -0.034

Percentage change: -0.2

Trend: Short-term bearish bias

Volatility: Low


To keep track of DeFi updates in real time, check out our DeFi news feed Here.

Author: John Isige




John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Source: https://coingape.com/77191-2/

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TrustToken and Syscoin Partner on a Stablecoin Bridge

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Decentralized marketplace and e-commerce protocol Syscoin has partnered with the stablecoin platform TrustToken.

The goal of the collaboration is to speed up payments and to provide further solutions to Ethereum’s blockchain. It also means that the five stablecoins of TrustToken, namely TUSD, TGBP, THKD, TCAD, and TAUD, will run on Syscoin’s blockchain and be available for users.

A Collaboration Between Syscoin and TrustToken

According to a release shared with CryptoPotato, the popular decentralized marketplace and e-commerce protocol Syscoin has teamed up with stablecoin platform TrustToken.

Right off the bat, this means that the stablecoins provided by the platform will now run on Syscoin’s blockchain as well. These are TUSD, TGBP, THKD, TCAD, and TAUD.

Stablecoins have grown in popularity over the past few months, mainly because of the DeFi boom, where they are used to enable staking, liquidity provision, and so forth. However, there was also an obvious challenge with all of it – scaling. Supposedly, Syscoin is intended to help with that. Using Z-DAG (Zero Confirmation Directed Acyclic Graph), the protocol claims to be able to settle transactions in less than 10 seconds with comparatively low fees.

The partnership will also enable users to mine two cryptocurrencies at the same time – SYS and BTC.

Distribution of the Roles

While Syscoin’s task would be scalability, TrustToken comes in for the stablecoin part. It’s a platform that aims at an open financial system through a selection of stablecoins.

The stablecoins it offers are collateralized, and it has also partnered with Chainlink, as well as other protocols.

The overall partnership is aimed at creating a solution for scalable and secure token payments at a lower risk interoperability with Ethereum’s network. It should make TrustToken’s stablecoins function quicker and cheaper following the enabling of the bridge.

Speaking on the matter was Syscoin’s Foundation Chairman Jag Sidhu, who said:

“Digital assets have growing needs for better usability, robust decentralized security, and a scalable way of ensuring every transaction complies with regulations. Syscoin uniquely aligns with all of these requirements. We look forward to TrustToken’s family of stablecoins becoming future-proof and gaining significant advantage with Syscoin.”

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Source: https://cryptopotato.com/trusttoken-and-syscoin-partner-on-a-stablecoin-bridge/

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