Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY are doing better

Bitcoin, Ethereum, S&P 500, JPY price analysis and news

  • Tether-de-pegging exacerbates cryptocurrency crash
  • Bitcoin is breaking through key levels
  • Stock sales give rise to demand for JPYs and bonds

Tether-de-pegging exacerbates cryptocurrency crash

Once again, large losses in the cryptocurrency area, where fears in stablecoins are exacerbating the current route. Yesterday’s focus had been on de-pegging in Terra, which caused people like Luna to drop over 90%. However, concerns are now rising about Tether’s potential de-pegging, which would have a far greater impact on cryptocurrencies. This morning, Tether briefly fell below $ 0.95 before quickly returning to $ 0.98. Looking ahead, this will be an important sentiment gauge for the Crypto space.

Tether chart: Daily time frame

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: TradingView

Bitcoin is breaking through key levels

Bitcoin: Key support levels were broken overnight with 30k and 2021-lows both declined. However, there would be signs of encouragement IF 30k is recovered quickly. That said, below 25k reveals the previous 2017 peak at 19500.

Bitcoin chart: Daily time frame

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: Refinitive

Eateum: Through 2k this morning, though triple bottom support by 1700 has held up so far. While this may provide some comfort, a turnaround in equities will be needed for a more meaningful recovery. Should the triple bottom not hold, there is little in the way of support until the bottom in March 2021 at 1280-1320.

Ethereum chart: Weekly time frame

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: Refinitive

Stock sales give rise to demand for JPYs and bonds

Equities: While the market’s response to the higher-than-expected inflationary pressure was initially choppy, there was little doubt that it was generally bad for risk appetite. On the other hand, S&P 500 futures are now testing 3900 and any bounce backs are likely to be sold in. The bias continues to sell the currants. That said, some normality has resumed with both the Japanese yen and bonds seeing the flight to safety amid recent market sales.

S&P 500, AUD / JPY, US 10Y Yield Diagram: Daily time frame

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: Refinitive

G10 FX 1D Change

Cryptocurrency Crash, Tether De-Pegging, S&P 500 Sinks, JPY Outperforms

Source: Refinitive, Technewscity