Bitcoin lower as $40k drive fails, AMC nears highs again
By John Shepard
17:19, 18 June 2021
Bitcoin (BTC) is 3.4% lower on the day after the push to the $40,000 level failed to see further gains.
AMC Entertainment (AMC) is higher again, nearing the all-time highs at $70.00. The stock was boosted by a credit rating upgrade.
BTC struggles with greenback gains
Bitcoin was trading at $36,570 after the coin’s push to $40,000 failed, stymied by a strong rally in the US dollar. The currency has been rising on the back of the latest Federal Reserve meeting. Fed Chair Jerome Powell hinted that the central bank may raise rates sooner than expected.
It is not all bad news for the coin. The Fed is moving earlier because of increasing inflation, and BTC is likely to be supported in an inflationary environment.
EQUOS, a digital asset services company, said the initial down move across risk assets was a “knee-jerk reaction”.
“Bitcoin and stocks will likely correlate through the turbulence, before reality hits: inflation is likely to see bitcoin outperform stocks.”
AMC stock back at $62 after a credit rating upgrade
The AMC share price was back at the $62 level, with the stock aiming to regain highs of $70.
AMC benefited from a credit rating upgrade last week, which was followed on Thursday by the beginning of voting on the company's sale of 25 million shares. This could bring in as much as $1.5bn in new cash and help offset the debt load AMC accumulated during the pandemic.
The company’s management has vowed to use the cash to go “on offence” and seek new growth opportunities. AMC was 3.2% higher on Friday and will look to test the all-time highs near $70.00
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