Bitcoin Loses Falls Sharply As Investors Run To Strong Dollar

Bitcoin Loses Falls Sharply As Investors Run To Strong Dollar

Over the past weeks, the crypto market has been volatile with Bitcoin losing about $3,000 in hours as oil rose more than 20% and also a lot of other commodities rose on supply concerns.

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On Friday, March 4, 2022, bond prices rose as investors sought safety in bonds, pushing the 10-year Treasury yield to 1.72%. Also, the dollar index has gained 2% over the past weeks.

The price of crude oil reached its highest level in a decade and Brent hit $112 a barrel this week. The Russian oil struggled to find buyers even after being offered at a steep discount.

According to data from the FTX exchange, BTC/USD has slid to a new March low of $40,551 down 10.2% in two days and 68,270 traders were liquidated foe the day. A total of $242.16 million was liquidated.

It was $6.24 million on Bybit-BTCUSD. S&P 500 declined 1.4% on the day following the declines in European indexes on fears over the security of Ukraine’s nuclear infrastructure.

A correction is taking place as tensions around Ukraine rise and also fear is also escalating as gold is surging upward.

In the meantime, macroeconomic prospects are bleak as a result of a combination of commodity inflation, a diminished capacity for central banks to tame it and the damage already done by the COVID19 response over the past two years.

This week, investors will be paying close attention to inflation data, the rising oil prices and also the continued invasion of Ukraine by Russia.

With the pending rate hike of the Federal Reserve on March 16, investors will want to focus on that but the Fed will also be top of mind.

Even with the release of the consumer price index for February on Thursday, the economic calendar is relatively light this week.

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