Risk assets may see a welcome rebound after the October Empire State Manufacturing Index results significantly below forecasts. Bitcoin (BTC) got close to $19,529 at the opening of Wall Street on October 17 as the price of U.S. shares approached $20,000 per share. Stocks advance as the U.S. dollar declines. BTC/USD reached $19,672 on Bitstamp and was up 3.5% from the weekend lows.
The S&P 500 and Nasdaq Composite Index gained 2.7% and 3.2%, respectively, within 30 minutes of trade, while the pair increased in step with stocks.
What Experts Think You Should Watch Out For
The Empire State Manufacturing Index decreased to -9.1 for October, well below the predicted -4.3 and September’s -1.5 reading, coupled with the action to provide dismal U.S. economic statistics. According to the October survey, manufacturing activity decreased in New York State, according to the New York Federal Reserve’s data analysis. The overall business climate index dropped eight points to -9.1. Twenty-three percent of respondents said that things had improved during the last month, while thirty-two percent said that things had worsened.
Michal van de Poppe, the founder and CEO of the trading company Eight responded by stating that the outcomes were far worse than predicted. Top on Yields and $DXY are approaching. He foresaw a surge in bitcoin.
The U.S. dollar index (DXY) then started to reverse some previous gains for the day, aiming for 112 and down 0.65%. In his summary of recent macro research, Mike McGlone, senior commodity analyst at Bloomberg Intelligence, stated that risk asset deflation in 2022 and Fed tightening presage an elusive end game. The lower price fix in commodities may be required to stop the Fed’s constraint and the declining money supply. Crude oil that has cooled down might revive gold and bitcoin.