The markets are currently suffering from a pronounced lack of data and are effectively operating in the dark. Risk assets have pulled back across the board: The Nasdaq lost two percent over the past three trading days and Bitcoin slipped well below the USD 95,000 mark at the time of writing.
Even traditional safe havens such as gold have come under pressure, highlighting the sometimes contradictory dynamics of recent market movements. Concerns about a possible technology bubble played a role here, as did nervousness ahead of Nvidia's quarterly figures, which were published on Tuesday. At the same time, there was a noticeable reassessment of expectations for an interest rate cut in December: the probability fell from 70% to 42% within a week.
This development is surprising, especially as there have been no new statements from members of the Federal Open Market Committee of the US Federal Reserve and no relevant macroeconomic data has been published that would plausibly explain such a change.
If expectations of no interest rate cut are confirmed, this should prevent a further weakening of the US dollar and dampen liquidity on the financial markets - both of which have been key drivers of the Bitcoin price to date.
There is currently a broad-based wave of selling, with the daily realized value reaching more than USD 3 billion last week. $BITC (-2,38%)
