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For the second time this week, the SP 500 and Nasdaq hit records as Bitcoin tried to regain a foothold

August 22, 2020

Wall Street stocks rose higher on encouraging economic reports and strong results from Tesla and Apple that led to their major SP 500 and Nasdaq set new records for the second time in seven days.

At the end of the day, the SP 500 closed higher than + 0.33% to 3,392 units, while Nasdaq technology rose a + 0.74% to 11,562 points.

The Dow Jones industrial average was 190 points and ended at 27,930 units (+ 0.69%).

For the second time this week, the SP 500 and Nasdaq hit records as Bitcoin tried to regain a footholdFor the second time this week, the SP 500 and Nasdaq hit records as Bitcoin tried to regain a foothold

The Nasdaq hit a new record just a day after setting another similar milestone thanks to strong gains from Apple and Tesla.

Both companies hit intraday highs this Friday This makes Elon Musk’s company, which trades over $ 2,000 per share, one of the most expensive on Wall Street. after the 5-on-1 split for the forks at the end of the day.

Apple has now hit a new all-time high before planning a stock split. of 4 for 1 at the end of the month, reaching an average price of USD 498 per unit.

The results come from an optimistic environment for the development of more than 160 vaccines against COVID-19 worldwide, according to data from the World Health Organization. In that regard, Pfizer and its German partner BioNTech said their vaccine candidate is on the way to a regulatory review in October, which boosted both companies’ share prices.

The companies said the vaccine was “well tolerated by less than 20% of participants with mild to moderate fevers.”

With a US composite PMI index up nearly four percentage points in August versus July and a weaker-than-expected return on the Philadelphia Federal Reserve’s business index last Thursday with weekly jobless claims at 1.1 million, investors took the risk a positive environment by boosting the share price.

The optimistic sentiment was reflected in the increase in business activity within the American country, with home sales rising at historic levels since 1968This managed to suppress the decline in stocks in the sector’s companies over the past few days, pushing the dollar towards a relative surge against other major fiat currencies.

Raw materials down

As expected, fundamental safe haven assets like Gold and crude oil gradually fell this Fridaycontrary to the news about positive economic outlook in the world’s leading economy.

The precious metal fell nearly nine units for one -0.46% up to USD 1.9737.31 per ounce, with up to 40 points of the intraday maximum being lost even in the middle of the day.

In the meantime, American crude oil -WTI- fell by the wayside -1.13% Brent closed at $ 42.27 a barrel while its European counterpart lost similar positions, ending at $ 42.28 a barrel -1.23%.

The uncertainty due to a decline in global demand due to the pandemic and Iraq’s inability to curtail OPEC + are some of the pessimistic reasons investors have today about crude oil in general.

Bitcoin price stagnates

After breaking the $ 12,000 resistance level Bitcoin’s price couldn’t stay above this level and returned to forming a similar pattern in one day that was observed on June 1, 2020 when BTC price broke the 10,000 level and failed to prevail above that mark.

Now the price has broken the triangle pattern created downwards and everything seems to indicate that the decline will be around the USD 11,400 limits in the next few days to the key zone. Just like we pointed out in our previous post on cryptocurrency last Wednesday.

For now, despite its decline, the asset remains and is at optimal levels for many miners and holders of the cryptocurrencyIn a rather bleak scenario due to the pandemic that has picked up again thanks to the push of decentralized funding and the use of BTC as security in Ethereum, which has given the crypto space a new twist in recent months.

In the medium term, Bitcoin’s price appears to be poised to set new historic records, as several key analysts in the space have pointed out, in part due to the similar behavior that occurred four years ago when the asset passed the 20,000 mark.

Not only is it bitcoin, but other altcoins are also falling behind

In a market that is extremely dependent on the leading cryptocurrency, It is to be expected that before the Bitcoin price collapses, the other major altcoins will also decrease their rise.

In the middle of a red board In the case of the 10 most important cryptocurrencies, the decline of LINK, ADA and ETH is striking at -11.83%, -6.35% and -6.29%, respectively.

In the case of LINK, investors in the project saw the price drop from a maximum of $ 19.94 on August 16 to a minimum of $ 13.37 today, a decrease of -32.65% in just one week.

The most important altcoin on the market and one of those responsible for the mass adoption of cryptocurrencies. Ethereum is down -12.68% from its annual high of $ 443.05 on August 15, but has not yet broken its strong support of $ 380.76.

For now, in the middle of a gray day, the big winner within the crypto ecosystem was without a doubt the sign OMG «OmiseGO», which today managed to increase its price by up to twenty percent, and a weekly sum of + 251%.

The OMG network has caught the attention of developers, taking advantage of the shortcomings Ethereum continues to experience due to its network congestion and high transaction fees.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.

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