Bitcoin is trading below the critical $94,000 mark on Thursday, highlighting a challenging week for the cryptocurrency. It experienced a decline of over 5% within the week, manifesting concerns among investors. In parallel, economic data from Europe, including German Industrial Production and Eurozone Retail Sales for November, failed to invigorate the Euro, which continues to face pressure from the US Dollar's sustained demand.
On Wednesday, Bitcoin US spot Exchange Traded Funds (ETFs) saw an outflow exceeding $568 million. This significant withdrawal underscores a waning interest in Bitcoin, as investors appear cautious amid volatile market conditions. The EUR/USD pair is trading at approximately 1.0300 during the European session on Thursday, struggling to maintain stability and remaining on the back foot due to insufficient economic stimulus from recent data.
Simultaneously, GBP/USD is consolidating near 14-month lows, trading below 1.2300 in European trading sessions. The UK bond market is also experiencing turbulence with a notable sell-off, driving the 10-year Gilt yields to their highest since August 2008. These developments reflect the broader pressure exerted by the robust US Dollar, which continues to exhibit extended strength across markets.
The daily technical setup for GBP/USD remains bearish, suggesting further challenges ahead for the British currency. Market participants are now turning their attention to future Federal Reserve communications, or "Fedspeak," as they seek insights into potential monetary policy directions that could impact currency movements globally.