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Bitcoin plummets 13% in a day

GBP/USD – Daily Candlesticks
Source: GKFX / MT4 (January 22, 2021)

GBP/USD has broken out from a short-term consolidation with a breakout above the Jan 4 & Jan 14 peaks as well as the 1.37 round number. The breakout continues the months-long uptrend with a fresh 2 ½ year high. 
 

TAKEAWAYS


•    Bitcoin gets slammed 13% after ‘double spend’ report, other cryptos dive 
•    GBP/USD breaks out above 1.37 on dollar weakness
•    EUR/USD gains for third day as ECB keeps policy unchanged, says it is ‘prepared to act’
•    Nasdaq hits another record high as tech stocks gain before Q4 earnings next week
•    Gold flat after big gains
•    Oil prices edge higher despite surprise build in US inventories
•    DAY AHEAD: UK retails sales, global January PMIs
 

GURU WISDOM


“The credit belongs to the man who is actually in the arena; whose face is marred with dust and sweat; who strives valiantly, who errs and may fall again and again, because there is no effort without error or shortcoming.” - Theodore Roosevelt
 

MARKETS


*Daily closing price
↗ EUR/USD    1.2165        (+0.42%)
↗ GBP/USD    1.3733        (+0.48%)
↘ USD/JPY    103.11        (-0.04%)
↗ S&P 500    3700.65    (+0.03%)
↘ Hang Seng    27,472.81    (-0.12%)
↗ Gold        1869.80    (+0.18%)
↗ Oil (Brent)    56.22        (+0.95%)
↘ Bitcoin    30,648        (-13.72%)
 

NEWS

 

Bitcoin correction


BTC/USD has snapped lower again, breaking below a widely-watched triangle pattern – potentially opening up further declines. Major support rests at 30,000. The big drop was triggered by reports of a possible ‘double spend’ event. BitMEX research has suggested the feared ability to spend a bitcoin twice may have occurred on the blockchain. This follows the comments from US Treasury Secretary Yellen that US lawmakers should aim to “curtail” the use of Bitcoin.
 

Pound leading


Sterling has benefitted the most from renewed weakness in the US dollar. Today strong housing data as well as lower than expected US jobless claims aided economic optimism and reduced demand for the dollar as a haven. For Sterling, less talk from the Bank of England of using negative interest rates and the UK second only behind Israel in the vaccine rollout per capita have been supportive.
 

Tech earnings


The Nasdaq pushed further into record high territory as investors turned bullish again on tech stocks before the release of Q4 earnings from big names next week. The renewed confidence comes after blowout subscriber growth and earnings from Netflix this week. 
 

DAY AHEAD 


*Times in GMT
07:00 – UK Retail Sales (MoM)(Dec) [1.2 % Exp vs. -3.8 % Prev]
08:30 – Germany Markit Manufacturing PMI(Jan) Prel [57.5 Exp vs. 58.3]
09:30 – UK Markit Services PMI(Jan) Prel [45 Exp vs. 49.4]
14:45 – US Markit Manufacturing PMI(Jan) Prel [56.5 Exp vs. 57.1 Prev]
14:45 – US Markit Services PMI(Jan) Prel [53.8 Exp vs. 54.8 Prev]
 

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