BTC/USD Turns Bullish As Elon Musk Fuels Bitcoin Payment Hopes as Gold Tanks

BTC/USD Turns Bullish As Elon Musk Fuels Bitcoin Payment Hopes as Gold Tanks

The flagship cryptocurrency rallied 9.08% to $39,110 as the Tesla executive reiterated the E.V. giants would start accepting Bitcoin payment once mining is done with more renewable energy.

Cryptocurrencies bounce back

The tweet appears to have fuelled a buying spree as Bitcoin had been struggling to rise past the $36,000 level over the weekend.

BTC/USD has come under immense pressure in recent weeks owing to Musk appearing to sever ties with the crypto. Tesla ending Bitcoin payments sent the pair tumbling by more than 50% from record highs of $64,000.

BTC/USD chart

Chinese authorities ramping up a crackdown on Bitcoin trading and mining have also fuelled the pair’s sell-off, with the pair struggling to rise past the $40,000 psychological level. It waits to be seen if Tesla reiterating it is open to accepting Bitcoin payment is the catalyst that will help fuel a leg higher after the recent sell-off.

Dogecoin is another cryptocurrency on the front foot at the start of the week. DOGE/USD was up by more than 4% early Monday morning, picking up steam as bulls sent Bitcoin and Ethereum up following Musk tweet.

DOGE/USD has been under immense pressure after imploding from record highs of $0.74. The pair has struggled to rise past the $0.40 level in recent weeks, with bears appearing to be in control.

DOGE/USD chart

The meme cryptocurrency has mostly been weighed down by negative rhetoric about cryptocurrencies in recent weeks. Similarly, a sell-off wave in the broader cryptocurrency sector has also continued to curtail any movement to the upside.

EUR/GBP turns bullish

In the forex market, EUR/GBP turned bullish Monday morning, powering through the 0.8600 level on sterling pound weakness. The pair has struggled for direction in recent weeks but appears to have regained upward momentum as Euro held steady at the start of the week.

After powering through the 0.8600 level, the pair now faces strong resistance near the 0.8650 level support to the downside is seen at the 0.8560 level.

EUR/GBP chart

The cross is attracting some buying pressure at the start of the week as investors remain wary that the U.K. will delay restrictions amid the threat of the Delta COVID-19 variant. The government pushing back on the easing of restrictions should continue to weigh heavily on the pound, consequently, send the pair even higher.

Gold under pressure

Gold remained under pressure in the Commodities market, as was the case as of the end of last week. XAU/USD has struggled to hold above the $1870 level plummeting to lows of $1856. Renewed dollar strength in the wake of inflation data coming much higher than expected is the catalyst fuelling dollar strength and pushing the precious metal lower.

A test of the $1840 level is on the cards as it represents a major support level on the 200-day moving average.

XAU/USD chart

A hawkish Federal Reserve amid improving U.S. economic outlook should continue to weigh heavily on the XAU/USD, which has struggled to hold on to gains above the $1900 in recent days. However, the bullion could bounce back after the recent sell-off on FED chair Jerome Powell downplaying inflation concerns and reiterating they are not thinking about tapering.

U.S. indices steady at all-time highs

U.S. stock futures held steady Monday morning, with the S&P 500 stabilizing at record highs heading into a pivotal week whereby focus will be on the Federal Reserve meeting. While the Dow Jones industrial average did drop 0.8% last week, the S&P 500 registered a third consecutive week of gains after rallying 0.4%.

S&P 500 index

The NASDAQ was the biggest gainer gaining nearly 1.9% and marking the fourth consecutive week of gains. All the major indices are flirting with record highs as investors remain confident of the FED sticking with its dovish mantra when it comes to monetary policy.

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