Bitcoin Price Up as BOE Announces Quantitative Easing, DXY Drops
In breaking news, the Bank of England stated QE will be put into effect on 'whatever scale is necessary' and the Bitcoin price has now recovered above $19,500, up 3% today.
Bank of England Quantitative Easing - Good Time to Invest in Bitcoin?
It may be too early to call an end to the 2022 bear market, dubbed in media the 'crypto winter'.
Many notable crypto traders are now beginning to accumulate Bitcoin however as market sentiment slowly begins to turn around. Earlier today Bitcoin Archive (@btc_archive) tweeted to his 1.1 million followers to 'buy Bitcoin' after the BOE quantitative easing news broke.
Bitcoin Price Up
Crypto trader Michaël van de Poppe (@CryptoMichNL) is expecting the Bitcoin price to move up to retest $20.7 and $22.5k, if $19.3k can be flipped to support.
'Bitcoin price breaks and flips $18.9K. Continuation, in which the weak $DXY and drop on the yields due to BoE starting QE again, resulting into strength on #Bitcoin.'
At the time of writing Bitcoin has hit an intraday high of $19,650, now consolidating around the highs.
The 2021 bull run for crypto and stocks took place during a time of QE, however throughout the course of the 2022 correction the Fed has quantiative tightening (QT).
Some sources are now optimistic the Federal Reserve may soon pivot from that policy, including Coindesk - which could stimulate a market recovery for risk assets.
Stock Market Bounce
The S&P 500 also bounced at the yearly lows. Crypto Damus (@AstroCryptoGuru) tweeted:
'After 10 -12 daily red candles SPX finally bounces at the yearly lows and daily RSI over sold.'
The DXY saw its first significant sell off in some time today, down 1.2%. Daan Crypto Trades (@DaanCrypto) tweeted to his 182,000 followers:
'Seems like a nice day to call a top on the $DXY.'
TraderSZ (@trader1SZ) opened a long position on GBPUSD earlier today and is currently in profit as the Pound moved up several percent against the Dollar today following its recent crash.
One of the most widely followed crypto Twitter accounts, Pentoshi (@Pentosh1) tweeted to his 613,000 followers that he is buying Bitcoin at these levels:
'I've been buying here as stated. Macro doom from 64k to 19.3k. Flipped to neutral with a short-mid term bullish bias now as things break, and max velocity reached imo on terminal rates.'
The total crypto market cap is now back above $900 billion. October is often referred to as 'Uptober' on crypto Twitter, historically being a good month for cryptocurrency as opposed to September.
Crypto News analyst Jacob Bury (@BuryCrypto) tweeted:
'The bears need a history lesson. September is statistically a notorious month for crypto, we’re going to see volatility and price decreases. Oct / Nov / Dec though…'
Best Crypto to Buy Now
Bitcoin may be the best cryptocurrency to hold currently. Altcoin Sherpa (@AltcoinSherpa) tweeted:
'Altcoins not really catching bids right now, too much uncertainty in the market. Once $BTC finds some sort of trend / stability, we should see more clarity on alts.'
If Bitcoin can break out above $20,000 and start a new uptrend, and the year long DXY bull cycle is tapering off, new low market cap coins could outperform.
Back in news headlines again, Terra Classic (LUNC) was among the biggest crypto gainers today.
Quant (QNT) has also been one of the top crypto gainers this month.