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(Kitco News) – Global asset prices trended higher on Tuesday as markets managed to reverse the scenario and move higher after an early period of weakness stemming from the Bank of Japan’s move to adjust its 10-year government bond limit. The central bank’s actions fueled already existing concerns that monetary tightening by central banks could trigger a global recession, but financial markets managed to recover during the day.
The major stock market indexes managed to avoid losses for a fifth straight day thanks to a midday recovery that helped the S&P, Dow and Nasdaq finish in the green with gains of 0.10%, 0.28% and 0.01% respectively.
Bitcoin (BTC) price reversed after hitting a low of $16,285 late Monday and reached an intraday high around $17,050 on Tuesday afternoon, before pulling back after finding support at $16,875, data from TradingView shows.
BTC/USD 4-hour chart. Source: TradingView
While the move higher was a welcome sight for many, it did little to change Bitcoin’s overall picture, with Kitco Senior Technical Analyst Jim Wyckoff noting that “Neither bulls nor bears have a near-term technical advantage.”
This suggests that traders will continue to see “more volatile and sideways trading on the daily chart until the end of the year, barring any major fundamental shocks to the market,” Wyckoff concluded.
Further validation of the volatile nature of the market over the past week was provided by analysts at Arcane Research, who noted that “BTC has hit both December highs and December lows over the past seven days, heavily influenced by macro events.”
The highs came after the release of promising CPI numbers, while the lows came in the days following the Federal Open Market Committee meeting, where Fed Chairman Powell delivered a dovish message signaling further interest rate hikes. Over the past week, Bitcoin has largely moved alongside US stocks in response to these developments.
“Overall, this correlated response to key macro developments suggests that correlations with other risk assets will continue to be relevant in BTC price discovery,” the analysts said. “The macro weeks ahead are much quieter, with fewer known catalysts, and the market could face another slowdown as we approach the end of this otherwise dire year.”
Altcoins are trending higher
Altcoins also edged up in price with bitcoin in the afternoon, with some tokens in the top 200 able to post double-digit gains amid increased activity.
Daily performance of the cryptocurrency market. Source: Coin360
Top gainers for the day included Lisk (LSK) up 25.08%, Secret (SCRT) up 13.55% and Magic (MAGIC) up 11.26%.
The total cryptocurrency market cap is now $814 billion, and Bitcoin’s dominance rate is 39.9%.
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