Bitcoin, BTC/USD, China, Oil, Copper, Iron Ore – Talking Points
- Bitcoin prices fall alongside US stocks despite rosy US economic data
- Copper and iron ore prices could rise further after PBOC comments
- BTC/USD drops for second day, prices target 20,000 psychological level
Tuesday’s Asia-Pacific Outlook
A risky tone sent U.S. markets lower overnight, a move that is likely to extend into today’s Asia-Pacific trading session. The Nasdaq-100 Index (NDX) fell 0.81% in New York. The drop in technology stocks follows encouraging data from the United States which showed that demand for goods from manufacturers remains strong.
Bitcoin prices fell too likely due to the broader pullback in market sentiment. In an interview, SEC Chairman Gary Gensler called Bitcoin a commodity. This would suggest that Bitcoin might better fall under the regulatory control of the Commodity Futures Trading Commission (CFTC). However, Mr. Gensler has made it clear that he does not view other cryptocurrencies as a commodity.
Asian markets were trading mostly higher on Monday, brushing aside a report from China that showed declining profits for industrial companies. May’s decline was less severe than the previous month, however, crossing the wires at -6.5% from -8.5% in April. Increased profits from higher energy costs have likely helped companies that produce gasoline and other energy-by-products.
Copper and iron ore prices rose despite Monday’s Chinese economic data. This is likely due to comments from People’s Bank of China Governor Yi Gang. Mr Gang said in a television interview that “monetary policy will continue to be accommodative to support the broader economic recovery”. This statement appeared to encourage some bidding in the industrial metals space.
Elsewhere, oil prices rose in the WTI and Brent benchmarks. G7 leaders, currently meeting in German, are reportedly set to announce a plan to cap the price of Russian oil while allowing it to be sold to big buyers like China and India. This plan would aim to hit Russia’s oil coffers while lowering the price of oil on the world market. Details are expected tonight.
Notable events of June 28:
- Japan – 2 Year JGB Auction
- South Korea – Consumer confidence (June)
- Japan – Retail Sales (May)
Click here to see today’s full economic calendar
BTC/USD Technical Forecast
Bitcoin prices fell for a second session, but the losses were moderate compared to the selling seen earlier this month. The psychological level of 20,000 remains a key level of potential support if prices continue to decline. A bounce could see the 20-day simple moving average (SMA) turn into resistance. The MACD oscillator posted a bullish signal earlier this week, crossing above its signal line.
BTC/USD daily chart
Chart created with TradingView
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the comments section below or @FxWestwater on Twitter