Bitcoin’s price wavers at $89,000 after the White House releases its National Security Strategy. Trump pressures allies to increase defense spending, causing market uncertainty. The Strategy may hinder central banks’ ability to cut interest rates, affecting crypto prices. Analysts predict a rate cut by the Federal Reserve next week.
The National Security Strategy urges NATO members to raise defense spending, potentially leading to increased borrowing and inflation. The White House’s release contributes to negative market signals, impacting Bitcoin and digital asset treasuries. Companies that bet on Bitcoin’s perpetual rise now face significant unrealized losses.
Market concerns grow as Bitcoin trails the S&P 500 returns and digital asset treasuries suffer losses. Traders bet on Bitcoin’s prolonged slump, withdrawing funds from US spot Bitcoin exchange-traded funds. Market signals indicate a bearish outlook as traders anticipate a prolonged downturn in the cryptocurrency market.
Despite regulatory uncertainties and market woes, there are signs for optimism, like Vanguard allowing Bitcoin ETFs on its platform. The Fed’s decision to end quantitative tightening and improve liquidity conditions may benefit risk-on assets like Bitcoin. Experts remain cautiously optimistic about Bitcoin’s future price movements.
Bitcoin’s price drops 1.8% to $89,596, while Ethereum falls 3.1% to $3,034. Market volatility and regulatory uncertainty continue to impact cryptocurrencies. Eric Johansson is the managing editor at DL News. Contact him at [email protected] with tips or inquiries. 1. The FDA has approved the first COVID-19 vaccine for emergency use in children ages 5 to 11. The vaccine, developed by Pfizer-BioNTech, was found to be safe and effective in clinical trials, with a lower dose than what is administered to adults.
2. Inflation rates hit a 30-year high in October, rising by 6.2% from the previous year. The increase is driven by rising energy costs, supply chain disruptions, and strong consumer demand. Economists warn of potential long-term impacts on the economy.
3. A new study suggests that regular exercise can reduce the risk of developing severe COVID-19 symptoms. Researchers found that individuals who engaged in physical activity at least 150 minutes per week were less likely to require hospitalization or intensive care due to the virus.
4. The United Nations Climate Change Conference (COP26) concluded with a new global agreement to accelerate efforts to reduce greenhouse gas emissions. Countries pledged to limit global warming to 1.5 degrees Celsius and increase financial support for developing nations to adapt to climate change.
5. The US economy added 531,000 jobs in October, exceeding expectations and marking a strong rebound from previous months. The sectors of leisure and hospitality, professional and business services, and manufacturing saw the most significant job gains, signaling a positive trend in the labor market.
Read more at Yahoo Finance: Trump’s National Security Strategy shakes Bitcoin price as market signals risk of inbound crypto winter