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Bitcoin, BTC/USD, China, Oil, Copper, Iron Ore – Talking Points
- Bitcoin price falls alongside US stocks despite upbeat US economic data
Copper and iron ore prices may continue to rise after PBOC comments
BTC/USD falls on second day, price faces psychological mark of 20,000
Tuesday’s Asia-Pacific Outlook
The risk-off tone sent U.S. markets lower overnight, a move that is likely to extend into today’s Asia-Pacific trading session. The Nasdaq 100 (NDX) was down 0.81% in New York trading. The decline in technology shares came after encouraging data from the U.S. showing that demand for goods from all manufacturers remained strong.
Bitcoin price is likely to fall due to the general decline in market sentiment. SEC Chairman Gary Gensler referred to Bitcoin as a commodity in an interview. This suggests that Bitcoin may be better positioned to undergo regulatory scrutiny from the Commodity Futures Trading Commission (CFTC). However, Mr. Gensler made it clear that he does not see other cryptocurrencies as commodities.
Asian markets were mostly higher on Monday, ignoring a report from China that showed lower profits for industrial companies. However, the decline in May was less dramatic than the previous month, falling by -6.5% compared to -8.5% in April. Higher profits from higher energy costs could help companies that make gasoline and other energy-derived products.
Copper and iron ore prices rose despite Monday’s Chinese economic data. This may be due to comments made by the governor of the People’s Bank of China, Yi Gang. “Monetary policy will remain accommodative to support the overall economic recovery,” Mr Gang said in a TV interview. The announcement appears to have encouraged some bidding in the base metals space.
Elsewhere, oil prices surged above WTI and Brent benchmarks. G7 leaders currently meeting in Germany are said to be close to announcing a plan to cap Russian oil prices while allowing sales to big buyers such as China and India. The plan is designed to hit Russia’s oil depots while reducing oil prices on world markets. Details are expected tonight.
Notable Events for June 28:
- Japan – 2 Years JGB Auction
South Korea – Consumer Confidence Index (June)
Japan – Retail Sales (May)Click here for today’s full economic calendar
BTC/USD Technical Forecast
Bitcoin prices fell for a second straight session, but not much compared to the sell-off earlier this month. The psychological 20,000 mark remains an important potential support level if prices continue to fall. On a rebound, the 20-day simple moving average (SMA) could act as resistance. The MACD oscillator showed a bullish signal earlier this week and crossed its signal line.
BTC/USD Daily Chart
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