The US markets are closed Thursday, on July 4th, but there were a couple of significant developments across Oil and Bitcoin nevertheless this week.
Firstly, Bitcoin The world’s biggest cryptocurrency took little support from weakness in the dollar, which fell amid increased bets on interest rate cuts by the Federal Reserve, as the Bitcoin price fell sharply to a two-month low on Thursday, breaking past a key support level thanks to uncertainty over several points of selling pressure, chiefly defunct exchange Mt Gox, saw traders remain averse towards the token. Broader crypto prices also followed Bitcoin lower.
Elsewhere, Oil prices fell from two-month highs in Asian trade on Thursday, as traders collected some profits from a strong run-up this week, while soft U.S. economic data raised some concerns over long-term demand.
But prices were still relatively buoyant after a substantially bigger-than-expected drawdown in U.S. inventories, while persistent conflict in the Middle East also kept a risk premium in play.
While the volatility in Bitcoin might be considered a side-show, the recent moves higher in Oil are more significant, and if held, will translate into higher prices and inflation down the road. The current geo-political uncertainties and electoral uncertainties are haunting markets, even though the NASDAQ hit another high. Something will need to give, eventually.
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