Forex Today: Bitcoin Plunges to 2-Year Low Price on FTX / Binance Contagion Fears

The US Dollar continues its decline for a third successive day, as Bitcoin falls sharply to a new low as an emergency deal between two major crypto exchanges is announced.

   

  1. Bitcoin fell sharply some hours ago to reach a new 2-year low just above $17k, triggered by news of an emergency deal between the crypto exchanges FTX and Binance, raising fears of contagion within the retail crypto industry. The price has recovered a bit but remains below the former support level at $18,570. However, there seems to be strong new support at $18k and the price does not want to spend long below that level, suggesting there are still strong long-term buyers stepping in here.
  2. The US Dollar continued to decline for a third day, as stock markets rose weakly. Both are likely driven by the likelihood of the Republicans making gains in mid-term congressional elections which took place yesterday, with key results continuing to trickle in through the night in the USA. The British Pound is showing the best medium-term strength against the Dollar, putting the GBP/USD currency pair in focus.
  3. Initial results in the US mid-terms suggest that Republicans are making gains, but that they may not do well enough to take control of the Senate. The better Republicans do, the more of a positive bump the stock market will be likely to enjoy, and the more the US Dollar will likely decline against other major currencies.
  4. WTI Crude Oil seems to have made a technical bearish double top at $93.50, suggesting the current downwards movement may have some way to run.
  5. Daily new global coronavirus cases dropped last week, continuing a downwards trend which began last July.
  6. It is estimated that 68.2% of the world’s population has received at least one dose of a coronavirus vaccination, while approximately 8.1% of the global population is confirmed to have contracted the virus at some time, although the true number is highly likely to be much larger.  
  7. Total confirmed new coronavirus cases worldwide stand at over 638.4 million with an average case fatality rate of 1.04%.  
  8. The rate of new coronavirus infections appears to now be significantly increasing only in Japan.  
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

Did you like what you read? Let us know what you think!

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

0 User comments

exclamation mark

Please make sure your comments are appropriate and that they do not promote services or products, political parties, campaign material or ballot propositions. Comments that contain abusive, vulgar, offensive, threatening or harassing language, or personal attacks of any kind will be deleted. Comments including inappropriate will also be removed.

Read more
Add new comment
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.