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Crypto Frenzy Continues

INVESTINGCrypto Frenzy Continues

Yesterday was another day of testing the important level of 4.30 PLN to EURPLN. After data from the United States, there was even a breakthrough of this barrier, but we quickly returned distinctly above it.

Weaker data for the dollar

Yesterday’s data from the United States consisted in reality of GDP data revisions. The number of mortgage applications and the trade balance were also published, but these are not readings that cause revolutions on the currency markets. The revision of GDP data was strangely received by the market. The final data was better than initially, albeit symbolically. However, the market was expecting a much larger breakthrough. As a result, despite the positive reading, the dollar exchange rate was retreating. The strength of capital inflows to Europe can be seen in the exchange rate of the zloty. As the dollar rebounds, it strengthens. However, an attempt was made to break the multi-year technical trend. The best evidence of how strong these levels were is that the rate bounced back like a scorched one and jumped more than two pennies upwards.

New Zealand does not change interest rates

Last night we had a decision on interest rates in New Zealand. There have been no changes. Interestingly, the market was waiting for a rate hike, which is a significant change compared to expectations in other countries. The best proof of what investors were expecting was the reaction of the markets. After the decision, the New Zealand dollar began to lose sharply against its American counterpart. The exchange rate fell by over 1%, which for this currency pair is an exceptionally large change. The commentary to the decision indicated that despite the lack of increases, the bank does not expect cuts before 2025. On the other hand, inflation expectations are expected to decline, so a rate hike was not necessary.

Cryptocurrency frenzy continues

On Monday, one bitcoin was worth $51,000, which some believed was a high valuation. Today, however, we reached $63,000 once again. This is an increase of over 20% this week, and there are still two days left… We are now at a stage on the market where emotions have taken over. There is a widespread belief that cryptocurrencies are going to all-time highs. We are still about 10% short, but seeing how fast this move is, many enthusiasts of this market are wondering not if we will break the record, but which one. On the other hand, currently, the lack of sellers means that relatively small funds raise the price significantly. The question is, what will happen to the market when someone wants to realize a large package at the top. Emotions currently overshadows this reflection.

Maciej Przygórzewski – Chief Analyst at InternetowyKantor.pl and Walutomat.pl.

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