Bitcoin Failed To Hold $110K. Here’s why

The key takeaways

• The focus of investors is shifting away from Bitcoin due to the rise in gold and strong US economic indicators.

• BTC is still falling despite the macro-economic tailwinds due to regulatory uncertainties and US Strategic Bitcoin Reserve plans.

BitcoinBTC( ) did not reclaim $110,000 Friday, in spite of high expectations by traders after the expiry of the BTC monthly options. The hopes for a rally post-expiry were dashed by the continued bearishness, fueled by macroeconomic data, and possible investigations targeting cryptocurrency treasury firms listed on exchanges.

US Commerce Department released Friday data showing that Personal Consumption Expenditures Index (PCE), a measure of consumer prices, rose 2.7% from August 2012 to August 2013. This is in line with the expectations made by economists. Persistent inflation This is why the US Federal Reserve has been cautious in lowering rates.

Bitcoin can’t keep up with gold, despite it reaching a new record.

Some traders are now expecting interest rates to drop to 3.75 percent or less by the end the year. futures markets.

CME FedWatch currently indicates a 67% probability implied of two 0.25 percent rate cuts before year’s end, down from 79% a week earlier. Bitcoin traders’ frustrations were amplified when gold rose to $3.770 on Friday. It was just 0.5% away from its previous high.

The S&P 500 posted gains on Friday after data showed a 0.6% rise in US consumer spending for August. Economists previously predicted that spending would slow down towards year’s end, citing concerns about the weakening of labor markets and rising prices. according Yahoo Finance is a great place to start.

Strong US economies tend to boost stock markets, as they drive corporate profits and lower perceived risks. This is especially true amid the growing concerns about an escalating global trade war. The US administration of Donald Trump recently announced a new round of tariffs on imports. This included a duty at 100% for patented pharmaceuticals.

Bitcoin traders are frustrated by regulatory pressures and delays in policy.

Bitcoin has been under pressure for some time now, and it’s not just because of macroeconomic issues.

In a Wall Street Journal article published on Thursday, it was revealed that several cryptocurrency-treasury businesses had been operating. contacted US regulators. Securities and Exchange Commission and Financial Industry Regulatory Authority reportedly expressed concerns regarding unusually high volumes of trading prior to announcements by corporations.

Regulations prohibit public companies from selectively disclosing material, nonpublic information—prompting suspicion over sharp gains in certain listed stocks days before relevant disclosures. “It’s typically the first step in an investigation. Whether it goes full, full length, it’s anybody’s guess,” David Chase told WSJ that he was a former SEC attorney.

Related: Crypto markets are down, but corporate proxies are doing far worse

The lack of action by the government on the issue is also increasing the frustration among traders. US strategic Bitcoin Reserve plan. While the Executive Order that was signed on March 1 referred “budget-neutral” No specific steps to collect Bitcoin have been made public. No concrete steps have been announced despite repeated promises to audit The government has not taken any action regarding its crypto-currency holdings.

Bitcoin’s value is under constant pressure, both from the macroeconomic environment that supports the stock exchange and from the mounting uncertainties caused by a possible SEC inquiry and the opaque nature of US Bitcoin Reserves.

This is intended as general information and not to be construed as investment or legal advice. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.