(MENAFN- Daily Forex)

• Bitcoin initially broke to fresh, new highs during the trading session on Thursday but has since been absolutely hammered as the momentum to continue going higher just doesn't seem to be there.
• This does make a certain amount of sense, despite the fact that I was willing to buy it, as the volume on Wall Street is almost nonexistent.
• This is one of the things that Bitcoin enthusiasts seem to have missed along the way: Bitcoin will now become a Wall Street financial asset. The law of large numbers is starting to come to fruition.

As Goes Wall Street, So Bitcoin Goes.

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Ironically, the success of Bitcoin might be its undoing. It's no longer the same asset as it was just a couple of years ago now that Wall Street has its hands on it, and of course this means that Bitcoin will move right along with other indices such as the NASDAQ 100. It's actually even more volatile than the NASDAQ 100 at times, and the fact that we have seen the Producers Price Index come out at 0.9% month over month doesn't bode well for the idea of the Federal Reserve suddenly slashing rates wildly.

Remember, Wall Street loves its“cheap money”, and if institutional traders are not going to jump into this market, the bottom could fall out. This is not my base case, but it is something that you need to keep in mind that it's a lot different than the last couple of times we've seen trouble in the Bitcoin market.

EURUSD Chart by TradingView

Another thing to keep in mind is that the volume is weak at this time of year and most traders can't be bothered. You may have seen a lot of stop loss is going off after that impulsive move during the Wednesday session, so that could exacerbate things. Regardless, I do believe that we are still very much in an uptrend, but I think you need to take your time going higher. Perhaps scaling into positions might work, but to simply just pile in with a ton of money just isn't feasible at the moment. But most markets are very untrustworthy at the moment. Capital preservation is job one.

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