Bitcoin slipped 5.80% to $47,545 on Thursday, December 9. Buyers surrendered all gains seen in the rally from $47,100 to $51,936. The news flow exerted a negative impact on risk-sensitive assets. The DXY index advanced, while gold, oil, major currencies, US stock indices and cryptocurrencies trended lower.
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Key drivers for the cryptocurrency market:
- Fitch downgraded the credit ratings of Evergrande and Kaisa to "restricted default" over their failure to make coupon payments by the end of a grace period.
- A Japanese study found that the new COVID-19 variant is 4.2x more transmissible than the Delta variant in its early stages.
- The PBoC is set to raise the reserve requirement ratio (RRR) in foreign currency deposits.
The BTCUSD pair stalled near the $47k support level. This key support is worth fighting for, otherwise we could see a leg down to the psychologically important $40k level. By 11:50 GMT, price action rebounded 2.45% to $48,683.
Cryptocurrency market sentiment remains ambiguous due to a key upcoming macro release stateside. Today will be a major session for the future of US interest rates. Heightened volatility can be expected at 13:30 GMT. If the CPI print comes in worse than expected, the dollar will come under pressure. Traders should watch how all assets react to the data. If gold, oil, and equities move to the upside, Bitcoin could recover to $50k. We noted the downside target above.
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