Cryptocurrencies see uninspired action as stocks open higher
Cryptocurrencies remain largely indecisive since last week’s heavy selling that pushed the prices of the leading digital assets below key support levels. Bitcoin and Ethereum for instance have found it difficult to reclaim the $23k and $1.6k levels, with the declines in crypto contrasting with slight gains for stocks after major indices ended last week higher.
Stocks rise as crypto continues to wobble
On Monday, Wall Street’s upbeat sentiment ahead of a key week in terms of economic data saw the three major averages open slightly higher.
The benchmark S&P 500 index was up 0.4%, the Nasdaq Composite had added 1% as of 10:30 am ET, while the Dow Jones Industrial Average was up 125 points, or 0.37% (after ending its 4-week losing streak with last week’s bounce).
In crypto, Bitcoin was flat at the time of writing on Monday at around $22,466 according to data from CoinGecko, while Ethereum was seeing an uninspired 0.2% change. Both coins were down 4% over the past week, with the decline linked to negative sentiment following the Silvergate (NYSE: SI) news.
The positive start to the week for stocks comes as the market witnesses another tough outlook for bonds. Indeed, bond yields look like they’ll continue to suffer following last week’s struggles for the benchmark 10-year US Treasury note.
The 10-year note was down nearly 4 basis points early Monday, hovering around 3.929%.
Apart from JOLTs job openings data (expected on Tuesday) and the February jobs report expected on Friday this week, investors are also keen on comments by Federal Reserve Chair Jerome Powell.
Powell highlights this week’s central bank policy outlook with his congressional testimony scheduled for Tuesday 7 March and Wednesday 8 March, 2023.
Top of investors’ mind will be what the Fed Chair has to say about US inflation and the central bank’s perspective on interest rates.
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