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Bitcoin, Global Minimum Tax, Wall Street, BTC / USD – Talking Points Asia-Pacific markets could be threatened after Wall Street session Global consensus on minimum tax at G-7 summit drives prices down Bitcoin Treasury Drops To Major Support Level With Death Cross Potential Persisting In Asia From Tuesday – Pacific Outlook
Asia-Pacific markets could be vulnerable after a poor performance on Wall Street where major indices traded slightly lower. Small-cap stocks outperformed and technology stocks to a lesser extent, with the Dow Jones Industrial Average (DJIA) falling 0.36%. The VIX’s “fear gauge” traded unchanged as the US dollar eased.
Treasury yields edged up, extending Friday’s gains as the industrialized Group of Seven (G-7) agreed to a global minimum corporate tax. The 15% rate aims to stop the “race to the bottom” in corporate tax rates. Wider talks between more than 100 countries will begin next month. A strong argument can be made about a global minimum tax stimulating inflation by squeezing corporate margins, which could explain the weakness of the Treasury.
The risk-sensitive Australian dollar and New Zealand dollar both rose overnight against the greenback despite weaker-than-expected Chinese data on Monday when the economic powerhouse saw exports and imports miss analysts’ expectations. Trade receipts for May showed a surplus of $ 45.54 billion against the expected $ 50.5 billion. The yuan was little reacted with USD / CNH hovering just above the 6.38 mark.
Today’s economic calendar forecasts that Japan’s finalized gross domestic product (GDP) in the first quarter is expected to decline -4.8% on an annualized basis, according to the DailyFX economic calendar. Australia will publish new home sales for the month of May and the NAB business confidence impression later. The US CPI print is also on the radar for later this week, with the event potentially having a big influence on global sentiment as traders reflect on tapered talks for the Federal Reserve.
However, market sentiment may face a headwind from the struggling crypto market. Bitcoin adds to recent weakness, with BTC / USD falling nearly 5% in the past 24 hours. The digital coin has been in the throes of a series of headwinds lately, with a tweet from Elon Musk late last week sending another wave of negative sentiment through BTC bulls.
Bitcoin technical outlook:
Bitcoin is facing a major support level well defined by the 61.8% Fibonacci retracement level from the late May low / high. Technically, Bitcoin is in a weak position, below its 20, 50, and 200-day simple moving averages. Additionally, the 50-day SMA may soon drop below its 200-day SMA, which would complete a bearish death cross and may push prices down. The psychological level of 30,000 would be a bearish target in the short term.
News that the US Department of Justice (DOJ) seized 63.7 Bitcoins from the hacking group DarkSide responsible for the colonial pipeline attack could also weigh on sentiment for the cryptocurrency given the apparent capabilities available to it. US law enforcement agencies to track crypto portfolios. According to the DOJ statement:
“Law enforcement was able to track multiple bitcoin transfers and identify that approximately 63.7 bitcoins, representing the proceeds from the victim’s ransom payment, had been transferred to a specific address, for which the FBI has the “Private key” or the approximate equivalent of a password required to access assets accessible from the specific Bitcoin address.
Chart created with TradingView
Bitcoin COMMERCIAL RESOURCES
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the comments section below or @FxWestwater on Twitter
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