Bitcoin retests $40K after stocks sell-off meets Fed balance sheet bust

Ethereum

Bitcoin retests $40K after stocks sell-off meets Fed balance sheet bust

Macro-induced mayhem costs Bitcoin bulls dearly as Ethereum also loses key $3,000 support.

Bitcoin retests $40K after stocks sell-off meets Fed balance sheet bust

Bitcoin (BTC) headed toward $40,000 on April 22 after a major retracement in equities speared bulls’ latest advance.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin sheds $3,000 on U.S. stocks plunge

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD being kept firmly under $41,000 Friday after volatility during the latest Wall Street trading session.

Thursday had seen United States markets react sharply to “surging” Treasury yields, the Nasdaq 100 dropping 2% and taking highly-correlated crypto down with it.

With that, Bitcoin briefly lost over $3,000 in a matter of hours, wicking to around $39,800 before recovering.

Another macro trigger meanwhile came in the form of the Federal Reserve’s balance sheet reduction finally getting underway. Also set to pressure stocks and risk assets, the move to combat forty-year record inflation was long priced in but was not visible in the data until now.

“Looks as if Fed balance sheet expansion has stopped shortly before the $9tn mark is reached,” markets commentator Holger Zschaepitz summarized on the day.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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