Bitcoin Lags as Unwinding of 'Fed Trade' Lifts US Stocks Above 200-Day Average

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Bitcoin trades at a significant discount to its 200-day average as popular macro trades of 2002 unwind, leading to risk revival in traditional markets. By godbole17

The S&P 500, Wall Street's benchmark equity index, has gained 16% in less than two months to trade above the widely-tracked 200-day moving average for the first time since early April. The USD/JPY pair, often called a turbo bet on the Fed policy and U.S. rates, has dropped 11% to its 200-day moving average. The dollar index, which tracks the greenback's value against major fiat currencies, has also dropped below its 200-day average.

"Historically, stocks and crypto have a strong relationship with each other. Without FTX implosion, bitcoin might have been trading at $29,000 by now – instead of $17,200 ," Markus Thielen, head of research and strategy at crypto services provider Matrixport, said.The chart shows bitcoin trades at a discount to the 200-day moving average. The S&P 500 has topped its 200-day average amid a sharp slide in the dollar index .

One question is whether the latest risk revival in traditional markets will be long-lasting, given that the U.S. economy is heading toward a. The situation identified by consecutive quarterly contractions in the growth rate does not sound conducive to risk assets.

 

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godbole17 Short it

godbole17 Keep buying bitcoin

godbole17 2002? Lol

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