Monat: Oktober 2023

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Bitcoin diverges from fiat currencies and makes a new high for the year; is this bullish?

  • Bitcoin breaks horizontal resistance at the $32k area
  • The rally extended above $35k
  • Bulls should be worried because Bitcoin diverges from the US dollar

Bitcoin investors are thrilled to see the cryptocurrency jumping to a new high for the year. More precisely, Bitcoin traded above $35k for the first time in over a year. 

It did so by tripping stops seen in the $32k area. This area provided resistance for quite some time, and Bitcoin finally broke above. 

That is the good news for bulls. 

The bad news is that in doing so, Bitcoin diverges with the rest of the fiat currencies. More precisely, while Bitcoin gained against the US dollar, the greenback rallied against its peers. 

It may or may not be something to worry about. But if I were an investor in Bitcoin (which I’m not), I would worry. Here is why. 

Bitcoin chart by TradingView

Bitcoin and the US dollar have diverged since Q1 2023

The problem for Bitcoin is that the dollar strengthened since Q1 2023 against its peers. Two examples are the EUR/USD and AUD/USD exchange rates, which peaked in the year’s first quarter. 

EUR/USD, for instance, peaked at 1.12 and now trades around 1.06. AUD/USD erased almost all its gains from the lows in October 2022.

Bitcoin is the last one standing against the dollar. While bulls may say that it is only normal because Bitcoin is not correlated with macro risks and positioning, I beg to differ. 

Since Bitcoin is part of many institutional portfolios, it does react to macro. Therefore, the rally we see here would likely be reversed unless the US dollar strength dissipates. Only if the dollar starts weakening it makes sense to cheer for a Bitcoin rally. 

Until then, caution is needed.

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Injective integrates into Google Cloud BigQuery

  • Injective (INJ) has integrated Google Cloud’s BigQuery via the cloud computing provider’s Analytics Hub.
  • The layer-1 blockchain joins a growing group of chains on BigQuery.

Injective, a layer-1 blockchain whose native token INJ has been one of the standout performers in the crypto market this week, has integrated with cloud computing services giant Google Cloud.

Injective eyes expansion in Web3 finance

As per an announcement published on Tuesday, Google Cloud will add core on-chain data for Injective on BigQuery via its data sharing platform Analytics Hub. Public access to the data will be through Injective Nexus, the blockchain platform’s official data integration protocol.

This means developers and enterprises can now tap into custom datasets across the Injective ecosystem, including real-time financial data. For Google Cloud customers, the collaboration allows enterprises to leverage bespoke blockchain datasets to build decentralised finance (DeFi) applications, institutional trading strategies and for machine learning.

“This data collaboration is a major step forward for the Injective ecosystem in continuing to expand its footprint into institutions and traditional finance,” Eric Chen, CEO and co-founder of Injective Labs, said in a statement.

“The Google Cloud team has played an integral role in the growth of Injective since its inception and this latest collaboration will help to take Web3 as a whole to new heights,” Chen added.

Injective integration with Google Cloud comes a few weeks after the cloud computing behemoth added support for BigQuery datasets to 11 more blockchain networks. That was in addition to initial support for Bitcoin and Ethereum.

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