February 26 REX Wire Market Outlook

Bitcoin is consolidating above $50,000, as stock markets make new all-time highs.

What happened in the markets last week?

It's a new week, and that means a new market report. Let's take a look at how stocks, currencies, and crypto are faring.

First up, the dollar. The all-important DXY reads 103.9, off a local high and potentially looking at further downside.

If that was the case, it would give a further tailwind to risk assets, which have already had a very good 2024.

Last week, the S&P 500 made new highs above 5,100, with the Dow and Nasdaq doing the same. Chinese stocks have also had a remarkable turnaround, with the Shanghai Composite putting in eight straight green days and topping 3,000 before a pullback, after the government intervened to prop up markets. Japan's Nikkei made a new all-time high for the first time since 1989.

Not only that, but European gas has dropped to its lowest price since May 2021. Gas is now cheaper than before Russia started restricting supply. This will help inflation figures, which in turn will increase the odds of interest rates being cut later this year.

Bitcoin Consolidates

Bitcoin has not made any wild moves in the last week, instead consolidating above $50,000. This would be a natural level for a pullback target, since (aside from being an attractive round number) it is a prior resistance level. So far bears haven't managed to push bitcoin below $50,500.

Bitcoin Dominance has dropped dramatically in recent days, now approaching 52%, indicating that it's time for alts to have a day in the sun. However, this feels like a short-term pause, as bitcoin is still in a strong uptrend.

GBTC outflows have slowed now, suggesting that Genesis may have finished selling the $1.3 billion in shares they were planning to liquidate as part of the bankruptcy proceedings.

Bitcoin won't go sideways for long, but for now, the COPA trial has become a focal point for the community. While this does not directly impact the markets, it's still a hugely important and fascinating chapter in Bitcoin's history, and a part of the bad news and fraud still hanging over the crypto space from the last cycle. It won't be long now before the Judge Mellor makes his ruling, which will be highly controversial by nature. At this point, however, it looks like nothing short of Wright signing a message with an early key could be the evidence he needs to convince the court that he is Satoshi.


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