Market Sentiment Positive: Bitcoin, Ether, Doge All in Demand | Webinar
Market sentiment analysis:
- Trader confidence remains high, with Wall Street stocks near record levels, gold and oil in demand, and currencies like GBP, EUR and AUD all benefiting against USD from the prospect of more US fiscal stimulus and positive coronavirus vaccine news.
- The cryptocurrencies like Bitcoin (BTC), Ether (ETH) and Doge all remain in demand too thanks to Elon Musk’s Tesla investing $1.5 trillion in Bitcoin and deciding to accept Bitcoin as payment for its autos.
Trader confidence high
Traders remain bullish after Monday’s record highs on Wall Street, with currencies like the Euro, the British Pound and the Australian Dollar all in demand against the US Dollar, which is still struggling after last week’s disappointing non-farm payrolls data, on hopes that US fiscal stimulus and coronavirus vaccines will lead to a global economic recovery.
As the so-called reflation trade spreads, gold is also in demand as a hedge against the inflation that could follow an economic revival, while oil is benefiting from output cuts as well as recovery hopes. The cryptocurrencies like Bitcoin (BTC), Ether (ETH) and Doge (DOGE) are all attracting investors too thanks to Elon Musk’s Tesla’s $1.5 billion investment in Bitcoin and its decision to allow buyers of its autos to pay in Bitcoin.
Bitcoin Price Chart, Daily Timeframe (November 30, 2020 – February 9, 2021)
Chart by IG (You can click on it for a larger image)
In this webinar, I looked at the trends in the major currency, commodity, stock and cryptocurrency markets, at the forward-looking data on the economic calendar this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it. You might also like to check out the DailyFX Trading Global Markets Decoded podcasts.
--- Written by Martin Essex, Analyst and Editor
Feel free to contact me on Twitter @MartinSEssex
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.