{"id":10929,"date":"2022-10-31T14:55:12","date_gmt":"2022-10-31T18:55:12","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=10929"},"modified":"2022-10-31T14:55:12","modified_gmt":"2022-10-31T18:55:12","slug":"why-bitcoin-will-crush-opposition-at-21000-green-november-in-the-making","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2022\/10\/31\/why-bitcoin-will-crush-opposition-at-21000-green-november-in-the-making\/","title":{"rendered":"Why Bitcoin Will Crush Opposition At $21,000, Green November In The Making"},"content":{"rendered":"

Bitcoin is hanging out below resistance at $21,000 and could be gearing up for another leg to the upside in the coming days. The cryptocurrency broke out of a range last week, trending higher and reclaiming previously lost territory.\u00a0<\/strong><\/p>\n

At the time of writing, Bitcoin (BTC) trades at $20,300 with sideways movement in the last 24 hours and a 6% profit in the previous days. This week might bring more volatility to the market with the U.S. publishing new economic data.\u00a0<\/p>\n

BTC\u2019s price with small losses on short timeframes. Source: BTCUSDT Tradingview<\/strong><\/a><\/p>\n

Fed Pivot Takes Shape, Bitcoin Likely To Benefit<\/h2>\n

Per a recent market update from trading firm QCP Capital, the crypto market enjoyed \u201cmuch-needed positivity.\u201d There has been a lot of speculation regarding the reasons for the upside short time trend, but the macroeconomic conditions are the most likely cause.\u00a0<\/p>\n

The U.S. Federal Reserve (Fed) is hiking interest rates to slow down inflation, and this monetary policy is wreaking havoc across global markets. As a result, the U.S. dollar has seen its highest levels in 20 years while investors take shelter amid economic uncertainty.\u00a0<\/p>\n

In this environment, nothing but the U.S. dollar thrived; other assets, including Bitcoin and Gold, and currencies, particularly the Euro, the Japanese Yen, and the British Pound, have seen losses. In that sense, the Fed is between a sword and a hard place.\u00a0<\/p>\n

The financial institution can continue hiking and tightening monetary conditions, but the pressure from the U.S. allies and elected officials is proving challenging. The market has begun pricing in a dovish Fed, according to QCP Capital, providing support for the Fed pivot narrative.\u00a0<\/p>\n

This thesis is bullish for Bitcoin and risk assets and contemplates a shift in the Fed\u2019s monetary policy to bring some relief to the market. The trading firm records a decline in the possibility of another 75 basis points hike for December.\u00a0<\/p>\n

A New Narrative To Save BTC?<\/p>\n

The possibility of the Fed\u2019s hiking at 75 bps dropped from 55% to 45% and could continue to decline due to internal and external pressure. Recent reports show that the Fed itself is facing the consequences of the current economic landscape.\u00a0<\/p>\n

The Fed is running an operating loss as it pays more to banks and money funds on interest than it earns on its securities portfolio.<\/p>\n

The central bank, which sends all surpluses to the Treasury, can create an IOU so the loss doesn\u2019t affect its operations https:\/\/t.co\/1UepiR5HgZ<\/a><\/p>\n

\u2014 Nick Timiraos (@NickTimiraos) October 31, 2022<\/a>\u00a0<\/p>\n

QCP Capital wrote:\u00a0<\/p>\n

Other central banks globally have already begun to show dovishness with the BoC being the first to hike +50bps (vs +75bps expected) and the ECB easing their forward guidance, suggesting that they are nearing the end of their hiking cycle earlier than expected.<\/p>\n

However, traders should be cautious of overly bullish sentiment. Bitcoin is still susceptible to macro forces in the short term, and the crypto market might negatively react to a \u201cpersistent hawkishness from the Fed,\u201d QCP Capital concluded.\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Bitcoin is hanging out below resistance at $21,000 and could be gearing up for another leg to the upside in the coming days. The cryptocurrency broke out of a range last week, trending higher and reclaiming previously lost territory.\u00a0<\/strong><\/p>\n

At the time of writing, Bitcoin (BTC) trades at $20,300 with sideways movement in the last 24 hours and a 6% profit in the previous days. This week might bring more volatility to the market with the U.S. publishing new economic data.\u00a0<\/p>\n

BTC\u2019s price with small losses on short timeframes. Source: BTCUSDT Tradingview<\/strong><\/a><\/p>\n

Fed Pivot Takes Shape, Bitcoin Likely To Benefit<\/h2>\n

Per a recent market update from trading firm QCP Capital, the crypto market enjoyed \u201cmuch-needed positivity.\u201d There has been a lot of speculation regarding the reasons for the upside short time trend, but the macroeconomic conditions are the most likely cause.\u00a0<\/p>\n

The U.S. Federal Reserve (Fed) is hiking interest rates to slow down inflation, and this monetary policy is wreaking havoc across global markets. As a result, the U.S. dollar has seen its highest levels in 20 years while investors take shelter amid economic uncertainty.\u00a0<\/p>\n

In this environment, nothing but the U.S. dollar thrived; other assets, including Bitcoin and Gold, and currencies, particularly the Euro, the Japanese Yen, and the British Pound, have seen losses. In that sense, the Fed is between a sword and a hard place.\u00a0<\/p>\n

The financial institution can continue hiking and tightening monetary conditions, but the pressure from the U.S. allies and elected officials is proving challenging. The market has begun pricing in a dovish Fed, according to QCP Capital, providing support for the Fed pivot narrative.\u00a0<\/p>\n

This thesis is bullish for Bitcoin and risk assets and contemplates a shift in the Fed\u2019s monetary policy to bring some relief to the market. The trading firm records a decline in the possibility of another 75 basis points hike for December.\u00a0<\/p>\n

A New Narrative To Save BTC?<\/p>\n

The possibility of the Fed\u2019s hiking at 75 bps dropped from 55% to 45% and could continue to decline due to internal and external pressure. Recent reports show that the Fed itself is facing the consequences of the current economic landscape.\u00a0<\/p>\n

The Fed is running an operating loss as it pays more to banks and money funds on interest than it earns on its securities portfolio.<\/p>\n

The central bank, which sends all surpluses to the Treasury, can create an IOU so the loss doesn\u2019t affect its operations https:\/\/t.co\/1UepiR5HgZ<\/a><\/p>\n

\u2014 Nick Timiraos (@NickTimiraos) October 31, 2022<\/a>\u00a0<\/p>\n

QCP Capital wrote:\u00a0<\/p>\n

Other central banks globally have already begun to show dovishness with the BoC being the first to hike +50bps (vs +75bps expected) and the ECB easing their forward guidance, suggesting that they are nearing the end of their hiking cycle earlier than expected.<\/p>\n

However, traders should be cautious of overly bullish sentiment. Bitcoin is still susceptible to macro forces in the short term, and the crypto market might negatively react to a \u201cpersistent hawkishness from the Fed,\u201d QCP Capital concluded.\u00a0<\/p>\n

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