Cryptocurrency markets recovered slightly from weekend declines during the overnight trading session and traded range bound near session highs for the majority of today’s market hours but profit booking activity and lack of fundamental support resulted in a decline from intra-day highs. Traders are divided over the cause of price rally as few speculate that this is course correction while others argue that this is because of fund flow from Russia. Headlines a few days ago hinted at Russian government considering probability of converting their fund reserves from fiat currency to cryptocurrency in order to escape impact of economic sanction from the USA.
Russian Govt’s Fund Flow Unlikely As of Today
While no official confirmation has been given by the Russian government on said matter, it is highly unlikely for Russia to have acted yet as such a huge fund flow into market, if news is to be believed worth several billion dollar’s will flow into market over course of time and regardless of lack of fundamental strength such an activity would have brought along with it many huge players in market who would have been interested in short term opportunity such an investment would provide. Such an event will cause the market to see a steady volume over prolonged time frame that is slightly higher than the recent past aside from volatile price market. Thus ongoing price rally can be viewed as nothing more than another small dead cat bound as has been in recent past.
Bitcoin rose up from $3500 price level to mid $3700 price range where it traded for majority of the day, however, in late European market hours, the pair fell back to $3600 handle where it has since traded in range bound action. As of writing this article, the BTC/USD pair is trading at $3675.7 down by 0.93% on the day. Meanwhile, Ethereum also saw similar price bound post which it has traded range bound just marginally below critical resistance level of $130 as recent rally couldn’t capitalize on gains owing to investors caution ahead of network upgrade scheduled to occur later this week. ETH/USD is trading at $128.53 down by 1.03% on the day.
This article was originally posted on FX Empire
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