Bitcoin price nears $20,000 as 'much worse' US data boosts stocks

Relief bounce on risk assets appears to be happening after Empire State Manufacturing Index numbers for October are well below expectations.

Market Update

Bitcoin (BTC) headed towards $20,000 as US stocks gained on Wall Street's open on October 17.

BTC/USD 1-Hour Candle Chart ( Bitstamp). Source: TradingView

Stocks Rise as US Dollar Falls

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hit $19,672 on Bitstamp, up 3.5% from weekend lows.

The pair rose in line with stocks, with the S&P 500 and Nasdaq Composite indices gaining 2.7% and 3.2% respectively in thirty minutes of trading.

This action was combined with weak economic data in the United States in the form of the Empire State Manufacturing Index, which fell to -9.1 for October, well below the forecast of -4.3 and -1.5 in September.

“Manufacturing activity declined in New York State, according to the October survey,” the New York Federal Reserve summarized in a commentary on the data.

"The General Business Conditions Index fell eight points to -9.1. Twenty-three percent of respondents said conditions had improved over the month, and thirty-two percent indicated that conditions had deteriorated."

Responding, Michaël van de Poppe, founder and CEO of trading company Eight, called the results "much worse than expected".

“Top on yields and $DXY on the horizon. Bitcoin to rally,” he predicted.

With that, the US Dollar Index (DXY) continued to retrace the day's recent gains, targeting 112 and down 0.65%.

"Risk-asset deflation in 2022 and Fed tightening despite the world's recessionary tilt portend an elusive end...