{"id":146649,"date":"2021-01-22T03:07:06","date_gmt":"2021-01-21T16:07:06","guid":{"rendered":"https:\/\/www.gomarketingteam.com\/auarticles\/stimulus-euphoria-leads-to-all-time-highs-a-new-us-administration-and-bitcoin\/"},"modified":"2022-08-29T09:48:09","modified_gmt":"2022-08-28T23:48:09","slug":"stimulus-euphoria-leads-to-all-time-highs-a-new-us-administration-and-bitcoin","status":"publish","type":"post","link":"https:\/\/www.gomarkets.com\/en\/articles\/cryptocurrency-trading\/stimulus-euphoria-leads-to-all-time-highs-a-new-us-administration-and-bitcoin\/","title":{"rendered":"Stimulus euphoria leads to all time highs, a new US administration and Bitcoin bust"},"content":{"rendered":"<p><strong><\/strong><\/p>\n<p><span style=\"font-weight: 400;\">We had an eventful week on global markets with the inauguration of a new US administration and a dovish stance from the European Central bank fuelling hopes of extended fiscal stimulus in the new year.<\/span><\/p>\n<h4><b>Equity markets<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Risk appetite got a boost this week from a push by US authorities for nearly $2 trillion in additional spending and plans to jumpstart a federal response to the COVID pandemic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">US equity markets had the best post inauguration performance since the 1980\u2019s driving the S&amp;P 500, Dow Jones and NASDAQ indices to record highs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The NASDAQ was also helped along by big beats from Netflix and Intel who reported earnings this week.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With this lead Australia&#8217;s share market hit 11-month highs, with help from an improved unemployment rate supporting investor optimism.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">European markets also performed well after ECB\u2019s decision to reconfirm its very accommodative monetary policy last night.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-270611\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2021\/01\/Picture1_22Jan21.png\" alt=\"\" width=\"481\" height=\"531\" \/><br \/>\nSource: Twitter<\/p>\n<h5><b>COVID<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">With Executive Orders from the new US administration seeking to accelerate the rollout of vaccines and the seeming peak in US COVID cases there was optimism this week from major Wall St analysts that we could be seeing \u201cthe beginning of the end of the COVID crisis&#8221; in the US.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-270596\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2021\/01\/Picture3_22Jan21.png\" alt=\"\" width=\"594\" height=\"339\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Goldman&#8217;s top economist Jan Hatzius,\u00a0 writes that &#8220;a vaccine-driven reduction in hospitalizations is likely to kick off the growth rebound through relaxed restrictions and some reductions involuntary consumer social distancing.&#8221;<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-270581\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2021\/01\/Picture4_22Jan21.png\" alt=\"\" width=\"594\" height=\"279\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Source: Zerohedge\u00a0<\/span><\/p>\n<h4><b>Forex market<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">While record planned US stimulus helped push equities higher it also created a headwind for the US Dollar which continued its downtrend. All major currencies performed strongly against the greenback this week.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-270566\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2021\/01\/Picture5_22Jan21.png\" alt=\"\" width=\"594\" height=\"292\" \/><br \/>\nSource: Bloomberg<\/p>\n<p><b>Aussie Dollar\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">AUDUSD strengthened this week driven by US dollar weakness and a better than expected unemployment rate of 6.6% indicating continued recovery of the Australian economy from the COVID economic shock. AUD is trading in a tight range and has managed to hold the important 0.77c support level.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-270551\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2021\/01\/Picture6_22Jan21.png\" alt=\"\" width=\"594\" height=\"280\" \/><\/p>\n<h4><b>Gold<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Spot gold (XAUUSD) had a strong week on the back of US dollar weakness and stimulus hopes, it bounced strongly from the 1820 -1800 support zone making 2 week highs and being up around 2% for the week at time of writing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Negotiations in the US on the particulars of the proposed stimulus bill and positive or negative news on regarding COVID are expected to play a part in the next few weeks of future price movements.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-270536\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2021\/01\/Picture8_22Jan21.png\" alt=\"\" width=\"594\" height=\"487\" \/><br \/>\nSource: GO MT4<\/p>\n<h4><b>Cryptocurrencies<\/b><b><\/b><\/h4>\n<p><span style=\"font-weight: 400;\">It was a tough week for Cryptos with flag bearing tokens Bitcoin and Ethereum among others sliding dramatically after recent stellar rallies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bitcoin dropped 10% alone on Thursday and down almost 20% on the week.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The drop seems to be a long overdue correction and sustained profit taking, it wasn\u2019t helped on Thursday by a report in a trade blog suggesting that there had been what\u2019s known as a double purchase, where the same \u201ccoin\u201d is used in two separate transactions. This rumour went viral casting doubt on the security of the Bitcoin blockchain. Industry veterans and people familiar with blockchain technology downplayed the notion, but with so many new investors with a poor understanding of blockchain technology the damage was done.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From a chart technician&#8217;s point of view, Bitcoin broke the lower barrier of the wedge pattern it has been consolidating in and has headed to the important 30000 support level.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-270521\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2021\/01\/Picture9_22Jan21.png\" alt=\"\" width=\"594\" height=\"411\" \/><br \/>\nSource: GO MT4<\/p>\n<p><strong><\/strong><\/p>\n<table style=\"height: 171px;\" border=\"1\">\n<tbody>\n<tr style=\"height: 75px;\">\n<td style=\"text-align: center; width: 728px; height: 75px;\" colspan=\"7\"><strong>Monday, 25 January 2021<\/strong><strong style=\"font-family: inherit; font-size: inherit;\">\u00a0<\/strong><strong><br \/>\n<\/strong>Indicative Index Dividends<br \/>\n<em><sup>Dividends are in Points<\/sup><\/em><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 104px; height: 24px;\" width=\"100\"><strong>ASX200<\/strong><\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\"><strong>WS30<\/strong><\/td>\n<td style=\"width: 103px; height: 24px;\" width=\"100\"><strong>US500<\/strong><\/td>\n<td style=\"width: 101px; height: 24px;\" width=\"100\"><strong>US2000<\/strong><\/td>\n<td style=\"width: 108px; height: 24px;\" width=\"100\"><strong>NDX100<\/strong><\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\"><strong>CAC40<\/strong><\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\"><strong>STOXX50<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 104px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 103px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 101px; height: 24px;\" width=\"100\">0.012<\/td>\n<td style=\"width: 108px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\">0<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 104px; height: 24px;\" width=\"100\"><strong>ESP35<\/strong><\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\"><strong>ITA40<\/strong><\/td>\n<td style=\"width: 103px; height: 24px;\" width=\"100\"><strong>FTSE100<\/strong><\/td>\n<td style=\"width: 101px; height: 24px;\" width=\"100\"><strong>DAX30<\/strong><\/td>\n<td style=\"width: 108px; height: 24px;\" width=\"100\"><strong>HK50<\/strong><\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\"><strong>JP225<\/strong><\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\"><strong>INDIA50<\/strong><\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 104px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 103px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 101px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 108px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\">0<\/td>\n<td style=\"width: 104px; height: 24px;\" width=\"100\">0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"https:\/\/www.gomarkets.com\/forex-education-courses\/\" target=\"_blank\" rel=\"noopener noreferrer\"><br \/>\n<img decoding=\"async\" src=\"https:\/\/www.gomarkets.com\/wp-content\/uploads\/2019\/02\/Next-Steps-Blog-Bottom-Banner.jpg\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We had an eventful week on global markets with the inauguration of a new US administration and a dovish stance from the European Central bank fuelling hopes of extended fiscal stimulus in the new year. Equity markets Risk appetite got a boost this week from a push by US authorities for nearly $2 trillion in [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4424],"tags":[],"class_list":["post-146649","post","type-post","status-publish","format-standard","hentry","category-cryptocurrency-trading"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Stimulus euphoria leads to all time highs, a new US administration and Bitcoin bust - Wixad<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gomarkets.com\/en\/articles\/cryptocurrency-trading\/stimulus-euphoria-leads-to-all-time-highs-a-new-us-administration-and-bitcoin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stimulus euphoria leads to all time highs, a new US administration and Bitcoin bust - Wixad\" \/>\n<meta property=\"og:description\" content=\"We had an eventful week on global markets with the inauguration of a new US administration and a dovish stance from the European Central bank fuelling hopes of extended fiscal stimulus in the new year. 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