Market Wrap: As Bitcoin Steadies, Oils Turmoil Continues

Tuesday 02 June 2020, 7:30 AM AEST - 3 months ago

cdbpijune1Source: CoinDesk Bitcoin Price Index

Both bitcoin and oil were relatively calm Monday, but that when it comes to volatility over the past couple of months, its crude, the backbone of global industrialization, thats seeing wilder swings as of late.

Bitcoin (BTC) was changing hands around $9,575 as of 20:00 UTC (4 p.m. EDT), gaining less than a percent over the previous 24 hours. Despite a small rally of around $250 on Sunday, the worlds largest cryptocurrency by market capitalization still spent much of the weekend in the mid-$9,000s.

We are still waiting on a breakout above $10,055 as a positive catalyst, said Katie Stockton, an analyst at Fairfield Strategies. Stockton sees signs of price appreciation in the near-term. There is an upturn in one of my preferred gauges that suggests this week will have a bullish bias within the framework of neutral short-term momentum and positive intermediate-term momentum.

btcjune1Bitcoin trading on Coinbase since May 30

The wait-and-see approach for traders to get over $10,000 bitcoin hump continues. In the meantime, traders have pointed to increased excitement in the oil markets over the past two months.

Jose Llisterri, co-founder of cryptocurrency derivatives exchange Interdax, says geopolitical tensions, combined with economic issues related to the coronavirus pandemic, have created a truly unique situation for crude. Oil is climbing 1% with a barrel of crude at $35 as of press time.

oilmarchContracts-for-difference for oil since March

The Russia-Saudi Arabia price war, combined with the COVID-19 pandemic, have immensely impacted oils roller coaster, ride Llisterri told CoinDesk. All these events are still playing out, so unless they are fully resolved markets should expect sudden swings in prices. These events have attracted many crypto traders who are lured into volatile markets.

While bitcoin has gyrated from as high as $10,081 to as low at $3,866 since March, oils price has been more rocky. In fact, oil ha ...

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