(EDITOR’S NOTE: First Mover will not publish Monday, Jan. 18, in honor of Martin Luther King Jr. Day in the U.S., a CoinDesk company holiday. The cryptocurrency market will be open, as it always is.)
Bitcoin (BTC) was lower, trading around the $38,000 level where prices have gravitated for the past week.
The market faces price resistance around $41,000, with support seen around $34,000, Mark Warner, head of trading for London-based BCB Group, a financial firm focused on digital assets, said in comments emailed by a spokeswoman.
“A move above $42,000 will likely see a resumption of the heady gains we saw last week,” Warner said. Prices are up 29% so far in 2021, versus a 0.4% year-to-date loss for the Standard & Poor’s 500 Index of large U.S. stocks.
In traditional markets, Asian and European shares fell and U.S. stock futures pointed lower on Friday, as anticipation of President-elect Joe Biden’s $1.9 trillion relief proposal, rolled out late Thursday, yielded to sober assessments of the state of the economy. Gold was little changed at $1,847 an ounce.
First Mover wrote last October how a “blue wave” in then-upcoming U.S. elections – full control of the government by Joe Biden’s Democratic Party – could lead to trillions of dollars of new government spending on coronavirus relief and economic stimulus.
That wave has arrived, in the form of a $1.9 trillion coronavirus-relief package proposed late Thursday by U.S. President-elect Biden. And some Wall Street analysts are now wondering openly if the economy and markets are becoming hooked on stimulus.
“The market is back to an expectation that more fiscal stimulus is all but inevitable,” Ed Mills, of the stock-brokerage firm Raymond James, wrote early Friday in a note to clients.
Cryptocurrency investors could jump straight to the implication: The Federal Reserve might need to print trillions of new dollars to help finance any extra borrowing by the U.S. Treasury…