Bitcoin (BTC) fell over the May holiday weekend after late trading saw cryptocurrency losses echo “basically everything.”
Macro holds BTC firmly in place
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair fell to $38,180 on Bitstamp to hover around $38,600 on April 30.
The pair had been a weak performer on Friday, which however was echoed by the vast majority of traditional assets, with the notable exception of Chinese stocks.
“Almost everything is down today apart from gold, platinum and Chinese stocks,” summarized economist Lyn Alden.
Thus, the S&P 500 ended Friday with a decrease of 3.6% and the Nasdaq 100, 4.5%. Hong Kong’s Hang Seng, by contrast, gained 4% overall.
The US Dollar Index (DXY), despite reeling from a twenty-year high, also offered no respite as it began to consolidate near its two-decade high.
“It would be quite difficult for the price to recover against a short-term macro bear market. It’s what happens after a correction that counts,” argued statistician Willy Woo in a blog post. discussion on twitter.
“But also DXY is at multiple technical resistances, if the government steps in with yield curve control then we could see markets rally.”
Yield Curve Control (YCC) is also being seen as a defining moment not only for cryptocurrencies, but for the economies ruled by the governments that instigate it.
“The YCC is game over,” former BitMEX CEO Arthur Hayes predicted in his latest post last week.
“When it is finally stated implicitly or explicitly, it is game over for the value of the dollar against gold and, more importantly, for Bitcoin. YCC is how we get to $1 million for Bitcoin and $10,000 to $20,000 for gold.”
The curiosity of the “supply squeeze squeeze” gains strength
Explaining why BTC/USD remains range bound in the meantime, Woo said that events could be mimicking Q4 2020 – just before Bitcoin broke out of what was then a three-year trading range.
“Bitcoin price is flat as Wall Street is selling futures contracts in a macro risk trade. Meanwhile, institutional money is picking up spot BTC at peak prices and moving to cold storage,” he wrote.
“It’s times like these that I remember the Q4 2020 offering squeeze.”
An accompanying chart showed exchanges inflows and outflows compared to the spot price, showing the impact of the “supply shock.”
As Cointelegraph reported, meanwhile, that same conclusion is also drawn from data covering Bitcoin whales.
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