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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
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The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Bitcoin Might Spark a Rally By Breaking Above $20,000

The last few weeks have been tough for the cryptocurrency industry with a soaring US dollar and the Federal Reserve interest rate hikes.

The jump in Bitcoin prices over the weekend gave bulls some hope, but a collapse into the $18,700 level halted that. With stocks higher on the day, the price of BTC could create a low here if it can close strongly above the $20,000 level.

Daily BTCUSD Chart

btcusd price chart

The fall in risk assets is being created by the Bank of England, which just announced that they are restarting their quantitative easing programme due to market panic. On a momentous day for markets, the BoE is capitulating on its previous monetary tightening stance. The central bank had been moving higher with interest rates to beat inflation and has now had to back off because of disruptions in the bond market.

The latest announcement raised hopes that other central banks, including the US Federal Reserve, were also getting closer to an inflection point for a pivot on their monetary tightening policies. However, US Treasury Secretary Janet Yellen did not seem concerned on Tuesday night with a statement that markets were functioning well.

It was also reported that the European Union will tighten restrictions on Russians’ crypto investments within the bloc as a response to the independence votes being held in Russian-occupied regions of Ukraine. A previous limit of 10,000 euros ($9,600) will be scrapped, a person briefed on the sanctions package said, which means Russians won’t be able to hold any assets in EU crypto wallets.

Bitcoin can secure these lows at $19,000 with a strong rally above the $20,000 level.

Last Updated: 29/09/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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