Bitcoin flat, stocks mixed, gold shines bright ahead of key inflation reports

NEW YORK (August 12) It was a volatile and choppy Monday for asset prices ahead of a busy week on the data front as traders largely refrained from placing new bets in the markets until they get a better read on inflation from the upcoming PPI and CPI reports. 

Bitcoin (BTC), stocks, and gold all traded in both positive and negative territory at various points during the day, with gold outshining the rest, trading at $2,470.10 at the time of writing, an increase of 1.62% on the 24-hour chart. 

The major stock indices finished the day as a truly mixed bag, with the Nasdaq gaining 0.21%, the Dow losing 0.36%, and the S&P flat. 

Rising economic concerns and chatter about a recession have made the going rough for risk assets, including Bitcoin, which has been stuck in a sideways range since late February. 

“In August, we have seen a sell-off across all risk assets and Bitcoin has been no exception, experiencing a 33.32 percent decline from cycle high which is also our current All-Time High at $73,666,” said analysts at Bitfinex. “This was the largest such decline for BTC of this cycle.”

“Recently, the spot price of Bitcoin approached this 1SD band, highlighting the intensity of the recent market downturn,” they added. “Historically, only 364 out of 5139 trading days (approximately 7.1 percent) have recorded prices deviating below this level. This low percentage underscores the rarity and severity of the current price drop, indicating that the recent sell-off has pushed the price to levels seldom seen in relation to the short-term holders' cost basis.”

“This situation not only reflects the sharp pace of the decline but also serves as a crucial signal for investors about the extent of negative sentiment and potential stress among newer market participants,” they concluded. “Such insights are valuable for assessing market conditions and potential recovery scenarios.”

Data provided by TradingView shows that Bitcoin spent Monday oscillating around support at $59,000, hitting a low of $57,700 in the early hours and a high of $60,760 near midday. 

At the time of writing, BTC trades at $58,770, an increase of 0.20% on the 24-hour chart. 

KitcoNews