{"id":450392,"date":"2020-11-20T13:53:16","date_gmt":"2020-11-20T13:53:16","guid":{"rendered":"https:\/\/wncen.com\/?p=450392"},"modified":"2024-06-11T14:08:37","modified_gmt":"2024-06-11T14:08:37","slug":"bitcoin-at-crossroads-with-its-biggest-bearish-fundamental-us-treasury","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-at-crossroads-with-its-biggest-bearish-fundamental-us-treasury\/","title":{"rendered":"Bitcoin At Crossroads With Its Biggest Bearish Fundamental: US Treasury"},"content":{"rendered":"

Bitcoin was heading upwards on Friday in anticipation of closing another week in gains (including the weekend).<\/p>\n

The BTC\/USD exchange rate continued its upside momentum<\/a> as it jumped $18,000, a psychological resistance level, all over again. At best, the pair wobbled between meager sell-off and buy-out attempts the entire day while maintaining a strong price floor around the said level.<\/p>\n

\"Bitcoin,<\/a>
Bitcoin remains unfazed by negative macro sentiments [for now]. Source: BTCUSD on TradingView.com<\/figcaption><\/figure>\n
Bitcoin remains unfazed by negative macro sentiments [for now]. Source: BTCUSD on TradingView.com<\/a><\/pre>\n
Its upside session appeared in contrast with a rather grim macroeconomic outlook. Traders in the US stock futures and gold markets turned choppier after the US Treasury Secretary Steven Mnuchin announced to close several emergency Federal Reserve lending programs<\/a>.<\/p>\n
Those facilities backed corporate credit and municipal-borrowing markets. But with Mr. Mnuchin’s decision\u2014that economists believe came under the Republicans’ pressure\u2014would remove about $455 billion that the Fed could have used to support the Main Street, as well as state and local governments.<\/p>\n
The Anti-Risk Rally<\/h2>\n
Bitcoin rallied luminously against the Fed’s credit facilities all across 2020. Many analysts agreed that the central bank’s infinite bond-buying policy turned yields on them lower. That, in turn, prompted investors to seek returns in riskier assets. As a result, Bitcoin, stocks, and gold benefited<\/a> from behaving like speculative alternatives to bonds.<\/p>\n
On Friday, the Bitcoin market absorbed the Mnuchin shock. The cryptocurrency rose higher as traders focused on the brighter spots, including its booming institutionalization and a mere community craze to see its value hitting $20,000\u2014a record high\u2014by year-end.<\/p>\n
Meanwhile, the “Bitcoiners” also appeared to have ignored Mr. Mnuchin because of his imminent exit from the US Treasury Secretary chair next month. As President-elect Joe Biden takes oath on January 20, he would most likely reenact the emerging lending programs, especially as the US’s rising coronavirus cases put further restrictions in place.<\/p>\n
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Wow. BlackRock CIO of Fixed Income Rick Rieder talking about Bitcoin replacing gold on CNBC this morning. pic.twitter.com\/9KZR0muJVp<\/a><\/p>\n
— Pomp \ud83c\udf2a (@APompliano) November 20, 2020<\/a><\/p><\/blockquote>\n