Bitcoin price falls more than 5% to $65k
Crypto markets fell in recent trade as fear entered the market, leading Bitcoin to drop over 5% back to $65k. This decline is a reflection of broader traditional market sentiments, where uncertainty often leads investors to pull back from riskier assets like cryptocurrencies. The volatility of Bitcoin, while a draw for some traders observing the historic gains in 2024, also makes it susceptible to sharp declines of equal or greater proportions.
Stock fear enters market
The S&P 500 Implied Volatility Index - VIX - rose more than 7% to approximate year-to-date highs around 15.00, signaling a significant increase in market fear. This spike often indicates that investors anticipate larger moves in the S&P 500, suggesting a growing concern about potential downturns. The VIX, derived from option pricing on the S&P, offers valuable insight into the sentiment among stock market traders and can indirectly affect other financial markets, including forex and commodities.
Gold hits all-time high near $2,300
Gold futures have appreciated almost $100 in the last week of trade to hit new all-time highs, nearing the $2,300 mark. This surge is typically driven by investors seeking safe-haven assets amidst uncertainties in the global financial markets. Unlike more volatile assets, gold's historical stability during times of economic tumult makes it an attractive investment, and its price movement can often reflect broader market sentiments.
US dollar approaching fresh highs in major forex pairs
The US dollar is on the rise, approaching fresh highs against major forex pairs, with EUR/USD dipping under 1.0800, GBP/USD nearing 1.2500, and USD/JPY approaching 152.00. This trend points to a strengthening US currency, which is often viewed as a safe haven among currencies during times of global financial unrest. The movement in these currency pairs is crucial for traders, as it can influence strategies in both the forex market and international trade investments.
Where is Bitcoin price going?
With BTC volatility around 75% (per The Block), projections for the next year suggest a potential fluctuation of +/- $48,750 in trading price, theoretically speaking. Already near all-time highs, these estimates could either place BTC above $100k or to multi-year lows around $17k. This level of volatility highlights the high-risk, high-reward nature of cryptocurrency trading and underscores the importance of a well-thought strategy and risk management. For traders, staying informed on market trends and sentiment is crucial in navigating the unpredictable waves of cryptocurrency markets.
How to trade US dollar
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on USD pairs
Trading forex requires an account with a forex broker like IG. Many traders watch major forex pairs like GBP/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like IG’s YouTube channel. Our curated playlists can help you stay up to date on current markets and understanding key terms. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
