Cristian Palusci2022-10-31

Macro conditions remain bad but Bitcoin shows resilience

The liquidity crisis in the bond markets and the difficulties of the real estate sector, with mortgage applications falling to the lows of the past crisis, have fueled the prospects of a Fed pivot. However, demand and inflation keep the tension high and in a few days we'll know the size of the fed funds hike and the October data on the American labor market. In this context, Bitcoin is demonstrating considerable resilience and despite the difficulties on traditional markets, in recent days there have been significant outflows from the main exchanges. I believe that the next few days will be useful to understand the direction of the equity markets and, given the close correlation, also of the crypto market. We also add the tensions on the geopolitical front, with Russia suspending the wheat deal after the attacks on Sevastopol. In short, it will not be boring and we will see if in such a scenario Bitcoin will have the strength to break the resistance at $ 21K.