Markets on Wednesday: Bitcoin Tumbles on FOMC Day
Rowan Crosby • 1 min read
Forex markets weren’t the headlines act yesterday. It seemed like it was the cryptocurrencies and stocks that felt the heat.
US regulators subpoenaed Crypto exchange Bitfinex, which rattled markets. That sent Bitcoin down to the 10,000 level. This is an area that we have been testing regularly and we are now facing a huge test for the fledgeling digital currency.
Meanwhile, stocks also slid. We often see that as we come towards the end of the month. Large funds will rebalance and given the huge start to the year that we’ve seen in stocks they are certainly overheated. So it’s not surprising to see some profit-taking.
Today the majors will be in focus as the FOMC Statement is due for release. While nothing new is expected anything out of the ordinary could well bring the volatility.
Where to for the USD?
The Greenback is still in its bear trend and we are looking for opportunities to sell. Below 90.00 to me still signals that we are in the downtrend. If we get a short pike on the FOMC, that might be the level to watch.
Again tread carefully today as we are facing fundamental news. It has the potential to move price considerably and for a prolonged period.