Bitcoin hits $42,000, but does not hit intraday

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Bitcoin hits $42,000, but does not hit intraday

The global criptocurrency market cap went 1.2% to $1.8 trillion on Thursday evening, but did not cross the $40,000 barrier in intraday trading.

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Why It Matters: The apex coin and other major cryptocurrencies continue to shadow equities. On Thursday, the S&P 500 and Nasdaq bounced 2.5% and 3.1% higher after strong earnings numbers were reported by a number of major companies.

In the first quarter, the U.S. GDP fell 1.4%, while consumer spending rose 2.7% in the same period, according to economic data released on the same day.

The fall in GDP is leading to hopes that the Fed will moderate its hawkish tone, a move that is interpreted by them as positive for cryptocurrencies.

The chart structures he s tracking indicate a bottom on May 4, when the Federal ReserveFederal Reserve is due to hold its next meeting, according to Justin Bennett, a trader on the coin.

A more dovish Fed sparks a relief rally from the stocks and cryptocurrencies that Bennett said.

Glassnode co-founders Jan Yann tweeted that Fed s action at next week s policy meet may already be priced in, and any less severe outcomes could helpBitcoin touch above $42,000.

The dollar is showing extraordinary strength. The dollar was trading close to a 20 year high against the yen on Thursday as the Japanese unit fell below the 130 mark. The dollar index, a measure of the dollar's strength against six other currencies, rose as high as 103.93 intraday, reported Reuters.

Micha l van de Poppe tweeted on Thursday that the dollar would soon hit a peak whileBitcoin would break out. Santiment said on Twitter that the ratio of transactions taken in profit versus loss is rising because of a rebound in Bitcoin prices over the last couple of days. According to the behavior analysis platform, the apex coin is seeing some profit-taking.

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