Bitcoin and Ether Surge Above Support Amid China Optimism, US Futures Rise

May 17, 2022

Investors are flocking to Bitcoin while Ethereum sees its outflows continue for the ninth week in a row.


Bitcoin and Ether Surge Above Support Amid China Optimism, US Futures Rise

Bitcoin (BTC) remained over $30,000 as indices in Asian, Indian, European, and US markets turned green on Tuesday, according to statistics. After weeks of stringent lockdowns, traders priced in an easing of controls in Shanghai, causing Chinese equities to rise. Beijing’s policymakers have taken many initiatives in the last week to relieve the economic downturn. The optimism surrounding China aided in creating a good mood in the larger Asian market, with Hong Kong’s Hang Seng rising as high as 6% and India’s Sensex rising 2.5%. Japan and Shanghai indexes both gained roughly half a percentage point. In other news, the Stoxx 600 in Europe was up 1.5 percent in noon trade, S& P500 futures were up 1.5 percent, and the tech-heavy Nasdaq was up 1.9 percent.

Cryptocurrencies, which have recently been associated roughly 1:1 with larger financial markets, were up 3.2 percent following nearly a week of falls that saw bitcoin fall as low as $24,000. The largest cryptocurrency was trading at $30,300 at the time of publication. Ether (ETH) gained 2.2 percent in the last 24 hours to trade beyond $2,000, while Avalanche’s AVAX, BNB Chain’s BNB, and dogecoin all gained. Polygon’s MATIC (MATIC) rose 5.5 percent after Polygon Studios CEO Ryan Wyatt stated that the company is working with Terra projects hit by last week’s implosion and would link them to Polygon’s larger DeFi (decentralized financing) network. Before last week’s collapse, Terra had billions of dollars in worth on several DeFi apps such as Anchor.
The present-day drop in unstable asset sentiment has positioned stress on cryptocurrency markets. The Federal Reserve of the USA introduced that it’s going to hike hobby fees usually this 12 months that allows you to include inflation, with a view to reason marketplace volatility. Morgan Stanley’s wealth control department launched a letter this week cautioned about slowing financial growth. “The stock- and bond-marketplace downturn has developed to resemble an ordinary cyclical undergo marketplace instead of a correction,” Morgan Stanley Wealth Management’s Lisa Shalett wrote in a study on Monday.


Read more: Grayscale Investments has launched the first European cryptocurrency ETF.

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