updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131Treasury yields fell in the US as the war between Israel and Hamas rages on, with several thousand dead and wounded.
Treasury yields fell in the US on Tuesday as investors consider the economic and geopolitical effects of the ongoing war between Israel and Palestinian militant movement Hamas. Early Tuesday morning, the 10-year Treasury fell over 12 basis points to 4.6571%. The 2-year Treasury yield also fell, hitting 4.9843% after losing nine basis points.
Economists and investors are currently monitoring the Israel-Hamas conflict and considering the possibility that it would cause a ripple effect in the world’s financial markets. According to a CBS News report, the death toll on both sides has crossed 1,500. Hamas launched air attacks into Israel early Saturday morning at the end of the Jewish festival of Sukkot. Interestingly, it was also a day after the 50th anniversary of the Yom Kippur War of 1973. Also known as the Ramadan War, the war was an armed conflict between Israel and several Arab states, which ended with thousands dead, wounded, and captured.
Israeli Prime Minister Benjamin Netanyahu has publicly stated that Israel will take revenge and will “destroy Hamas’s capabilities”. On Tuesday, the Israeli military said it now has control of the Gaza-Israel border. Israel is still launching airstrikes into Gaza and will block access to electricity, food, and water for the millions of residents there. Authorities in both regions have announced 900 deaths and 2,600 people injured in Israel, with 687 dead and 3,700 injured in Gaza.
The Federal Reserve may consider the increase in Treasury yields in deciding on interest rates. According to Fed Vice Chair Philip Jefferson, the US’ apex bank must tread cautiously as Treasury yields continue to fall. Last Wednesday, Treasury yields fell in reaction to data that indicate a struggling labor market. The 10-year Treasury note fell 7 basis points, while the 30-year Treasury bond also lost 7 basis points. The data released also resulted in the 2-year Treasury note losing 9 basis points. According to the Dallas Fed President, the performance may indicate that there is no need for the Fed to hike interest rates.
In July, the Fed’s Federal Open Market Committee (FOMC) decided to raise interest rates by 25 basis points to the 5.25%-5.50% range. The range’s midpoint is the highest seen in the US since 2001. At the time, Fed Chairman Jerome Powell noted in a news conference that more rate hikes were necessary. He also added that the Fed still maintains its 2% target for the country’s inflation. However, Powell said the decision would depend on data available at the next meeting. Fortunately, the FOMC decided to leave rates unchanged following the September meeting. Since March last year, the Fed has been increasing rates to tackle rising inflation.
The International Monetary Fund has raised its US growth forecast for the year. The IMF increased the forecast by 0.3 percentage points to 2.1%, stating strong business investments and consumer resilience. On the other hand, billionaire investor Ray Dalio recently predicted a debt crisis. According to Dalio, economic growth could fall to zero.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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On-chain data shows exchanges have received a huge Bitcoin inflow spike from long-term holders, a sign that could be bearish for the price of the crypto.
As pointed out by an analyst in a CryptoQuant post, some long-term investors holding on to their coins since between a year to a year and a half recently sent big inflows to exchanges.
The relevant indicator here is the “exchange inflow,” which measures the total amount of Bitcoin moving to centralized exchange wallets.
When the value of this indicator shows a large spike, it means investors have just deposited a lot of coins to exchanges. Such a trend is usually bearish for the price of the crypto as holders usually transfer to exchanges for selling purposes.
On the other hand, small values of the metric may show normal market behavior and that there isn’t largescale dumping going on at the moment.
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A modified version of the Bitcoin exchange inflow shows only transfers from those investors who had been holding on their coins since 12 months to 18 months ago. Here is the chart for it:
Looks like a large amount of coins were deposited by these long-term holders recently | Source: CryptoQuant
As you can see in the above graph, the value of the indicator observed a huge spike just recently. This means that long-term holders within the age range of 12 to 18 months transferred a big number of coins to exchanges, possibly for selling them.
In the chart, the quant has also marked the previous times this kind of trend took place. It looks like shortly following such a spike, the price has always observed a decline.
Related Reading |Bitcoin Closes 1st Green Month After 3 Reds, What History Says May Happen
Since a spike has also occurred recently, the price of Bitcoin may be in for a similar plunge soon, if the pattern continues to hold.
However, in certain cases, it’s also possible the value of the coin doesn’t see any effects from this. An example of such a situation would be if an outflow of similar or larger amount took place soon.
At the time of writing, Bitcoin’s price floats around $43.3k, up 23% in the last seven days. Over the past month, the crypto has gained 17% in value.
The below chart shows the trend in the price of the coin over the last five days.
Following the sharp surge a few days back, the price of Bitcoin seems to have moved sideways | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com