The United States is the world's largest economy and cryptocurrency's biggest investor, it means large number of capital inflow into the crypto space are from the United States and with the U.S economy battered and unstable due to COVID-19, foreign policy, etc US investors, mainly institutional investors, have been increasing their investments in crypto space, the new safe haven, in the last one year.

However, on Friday, the U.S commerce department released retail sales report, which measures US consumer spending that contributed over 70% of US GDP estimated at about $13.4 trillion. Retail sales that has been on the  decline for months and was predicted to come out at - 0.8%, unexpectedly came out at 0.7% in the month of August.

The unexpected improvement in consumer spending, in fact against the Consumer Confidence report that came out previously, bolstered U.S dollar attractiveness to 94 on dollar index as investors jumped on it and other dollar assets.

Why did investors jump on Dollar and how does it affect crypto and U.S dollar-quoted commodities?

The US dollar rose to a three-week high because capital inflow into American assets jumped as investors started predicting that the Federal Reserve (US central bank) could announce tapering (cutting down on bond buying -quantitative easing) at the Federal Open Market Committee (FOMC) meeting scheduled to be hold next week.

Quantitative easing is when government is buying debt (bonds) to support the economy. However, when government is cutting bonds purchase, it means the economy has started doing well enough to sustain itself without support.

This is why capital flow out of crypto space rose as institutional investors that are sustaining the crypto are now dumping their money on dollar assets - the very reason dollar value rose since Friday.

Market is about demand and supply, no demand in crypto space means falling/bearish market and demand in dollar means stronger US dollar - I actually bought dollar -sold GBPUSD- on Monday.

Here is why dollar quoted commodities like crude oil dropped. It is simple, because dollar products is now expensive for holders of other currencies. Therefore, demand for crude oil dropped against constant supply.

If FOMC announces tapering earlier than expected next week, crypto could fall even more!

https://investorsking.com/2021/09/22/here-is-why-cryptocurrency-u-s-dollar-quoted-commodity-drop-this-week/

Truth234:
The United States is the world's largest economy and cryptocurrency's biggest investor, it means large number of capital inflow into the crypto space are from the United States and with the U.S economy battered and unstable due to COVID-19, foreign policy, etc US investors, mainly institutional investors, have been increasing their investments in crypto space, the new safe haven, in the last one year.

However, on Friday, the U.S commerce department released retail sales report, which measures US consumer spending that contributed over 70% of US GDP estimated at about $13.4 trillion. Retail sales that has been on the  decline for months and was predicted to come out at - 0.8%, unexpectedly came out at 0.7% in the month of August.

The unexpected improvement in consumer spending, in fact against the Consumer Confidence report that came out previously, bolstered U.S dollar attractiveness to 94 on dollar index as investors jumped on it and other dollar assets.

Why did investors jump on Dollar and how does it affect crypto and U.S dollar-quoted commodities?

The US dollar rose to a three-week high because capital inflow into American assets jumped as investors started predicting that the Federal Reserve (US central bank) could announce tapering (cutting down on bond buying -quantitative easing) at the Federal Open Market Committee (FOMC) meeting scheduled to be hold next week.

Quantitative easing is when government is buying debt (bonds) to support the economy. However, when government is cutting bonds purchase, it means the economy has started doing well enough to sustain itself without support.

This is why capital flow out of crypto space rose as institutional investors that are sustaining the crypto are now dumping their money on dollar assets - the very reason dollar value rose since Friday.

Market is about demand and supply, no demand in crypto space means falling/bearish market and demand in dollar means stronger US dollar - I actually bought dollar -sold GBPUSD- on Monday.

Here is why dollar quoted commodities like crude oil dropped . It is simple, because dollar products is now expensive for holders of other currencies. Therefore, demand for crude oil dropped against constant supply.

If FOMC announces tapering earlier than expected next week, crypto could fall even more!

https://investorsking.com/2021/09/22/here-is-why-cryptocurrency-u-s-dollar-quoted-commodity-drop-this-week/

Crude oil and gas actually went up Right now, it's over $76 for Brent. That's the screenshot for this morning and investors in Nigeria responded to the good news by going after bargains in oil stocks like Conoil . Conoil ended up with 9.84%( approximately the daily max10% gain ) today. Demand for oil and gas has spiked up too with China peaking at highest demand in 5 years. Oman is predicting that oil will reach $200 while some experts predict that oil will reach $100 before winter.

FreeStuffsNG:


Crude oil and gas actually went up

Lol.. it is time bound. It rises today after data showed U.S. crude oil inventories fell to their lowest in three years today. The article you read stated this week. Crude oil has been dropping since Monday even with Gulf of Mexico accident, the increase started an hour ago after the U.S. Energy Information Administration said crude oil fell by 3.5 million barrels to 414 million barrels last week, lowest since October 2018.

Again, the surge in demand might be as a result of Evergrande $16 billion bailout announced by the Chinese government to plug possible catastrophe from over $300 billion debt incur by the real estate firm. China is the world's largest importer of crude oil. Lower inventories, means reduced supply while a healthy chinese economy means sustained crude oil demand.

Truth234:


Lol.. it is time bound. It rises today after data showed U.S. crude oil inventories fell to their lowest in three years today. The article you read stated this week. Crude oil has been dropping since Monday even with Gulf of Mexico accident, the increase started an hour ago after the U.S. Energy Information Administration said crude oil fell by 3.5 million barrels to 414 million barrels last week, lowest since October 2018.

Again, the surge in demand might be as a result of Evergrande $16 billion bailout announced by the Chinese government to plug possible catastrophe from over $300 billion debt incur by the real estate firm.

Sir, WoW, oil price has been increasing for weeks now and not dropped. It dropped to close the week last Friday yet it still went up WoW. Please kindly check your data sir. Surge in demand is clearly because most economies are opening back, OPEC+ has not been able respond to the increased demand and I suspect that most countries have started storing up strategically ahead of winter over concern about climate change that may cause extremely cold winter. Evergrande is predicted to have an impact but the Chinese government is responding well with the cash injection.

FreeStuffsNG:


Sir, WoW, oil price has been increasing for weeks now and not dropped. It dropped to close the week last Friday yet it still went up WoW. Please kindly check your data sir. Surge in demand is clearly because most economies are opening back, OPEC+ has not been able respond to the increased demand and I suspect that most countries have started storing up strategically ahead of winter over concern about climate change that may cause extremely cold winter. Evergrande is predicted to have an impact but the Chinese government is responding well with the cash injection.

I replied because you are respectful but you must always factor in time. Your views are valid if I am analysing longer time frame but not the first two days of this week.

Truth234:


I replied because you are respectful but you must always factor in time. Your views are valid if I am analysing longer time frame but not the first two days of this week.

Thank you so very much sir. I now see that you are using charts. I am referring to specific closing numbers and it rose yesterday and today. Monday closed about 74. something.

It short up again on Tuesday and today circa $76.56 and will likely maintain its WoW rise by the end of this week.

Here's a report of yesterday on business post sir https://businesspost.ng/economy/oil-returns-to-bullish-zone-over-tighter-us-supply/

Brent crude futures gained 68 cents or 0.92 per cent to settle at $74.59 per barrel, while the US West Texas Intermediate (WTI) crude futures gained 22 cents or 0.31 per cent to settle at $70.51 a barrel.

FreeStuffsNG:

Thank you so very much sir. I now see that you are using charts. I am referring to specific closing numbers and it rose yesterday and today. Monday closed about 74. something.
It short up again on Tuesday and today and will likely maintain its WoW rise by the end 9f this week.
Here's a report of yesterday on business post sir

I am using live chart and have been doing this for close to 20 years. Market closed lower on Monday and pared losses on Tuesday. Nothing more. Forget what you read on papers, journalists are not analysts.

Truth234:


I am using live chart and have been doing this for close to 20 years. Market closed lower on Monday and pared losses on Tuesday. Nothing more. Forget what you read on papers, journalists are not analysts.

Okay o. It's great chatting with you sir. Regards.

FreeStuffsNG:

Thank you so very much sir. I now see that you are using charts. I am referring to specific closing numbers and it rose yesterday and today. Monday closed about 74. something.

It short up again on Tuesday and today circa $76.56 and will likely maintain its WoW rise by the end of this week.

Here's a report of yesterday on business post sir https://businesspost.ng/economy/oil-returns-to-bullish-zone-over-tighter-us-supply/

Brent crude futures gained 68 cents or 0.92 per cent to settle at $74.59 per barrel, while the US West Texas Intermediate (WTI) crude futures gained 22 cents or 0.31 per cent to settle at $70.51 a barrel.

Here is the logic, if something open at $75.16 and closed lower at $74.09 on Monday but close at $74.59 on Tuesday, even below Monday's $75.16 per barrel. How is that gain? It pared losses!

Truth234:
The United States is the world's largest economy and cryptocurrency's biggest investor, it means large number of capital inflow into the crypto space are from the United States and with the U.S economy battered and unstable due to COVID-19, foreign policy, etc US investors, mainly institutional investors, have been increasing their investments in crypto space, the new safe haven, in the last one year.

However, on Friday, the U.S commerce department released retail sales report, which measures US consumer spending that contributed over 70% of US GDP estimated at about $13.4 trillion. Retail sales that has been on the  decline for months and was predicted to come out at - 0.8%, unexpectedly came out at 0.7% in the month of August.

The unexpected improvement in consumer spending, in fact against the Consumer Confidence report that came out previously, bolstered U.S dollar attractiveness to 94 on dollar index as investors jumped on it and other dollar assets.

Why did investors jump on Dollar and how does it affect crypto and U.S dollar-quoted commodities?

The US dollar rose to a three-week high because capital inflow into American assets jumped as investors started predicting that the Federal Reserve (US central bank) could announce tapering (cutting down on bond buying -quantitative easing) at the Federal Open Market Committee (FOMC) meeting scheduled to be hold next week.

Quantitative easing is when government is buying debt (bonds) to support the economy. However, when government is cutting bonds purchase, it means the economy has started doing well enough to sustain itself without support.

This is why capital flow out of crypto space rose as institutional investors that are sustaining the crypto are now dumping their money on dollar assets - the very reason dollar value rose since Friday.

Market is about demand and supply, no demand in crypto space means falling/bearish market and demand in dollar means stronger US dollar - I actually bought dollar -sold GBPUSD- on Monday.

Here is why dollar quoted commodities like crude oil dropped. It is simple, because dollar products is now expensive for holders of other currencies. Therefore, demand for crude oil dropped against constant supply.

If FOMC announces tapering earlier than expected next week, crypto could fall even more!

https://investorsking.com/2021/09/22/here-is-why-cryptocurrency-u-s-dollar-quoted-commodity-drop-this-week/

Great insights.

wealthtrak:

Great insights.

Thanks