Riskier asset class was back in flavour ahead of the US Federal Reserve’s monetary policy meeting later in the day. Investors are bracing up for another 75 basis point rate hike.
All the top crypto tokens are trading higher. XRP rallied more than 10 per cent, whereas Solana and Ethereum jumped 5 per cent each. Bitcoin and Avalanche added 4 per cent each.
The global cryptocurrency market cap was trading significantly higher at $939.86 billion, jumping more than 3 per cent in the last 24 hours. However, the total trading volume zoomed over 8 per cent, close to $75.5 billion.
Updates from India
Crypto exchanged WazirX has launched another ‘Learn & Earn’ campaign in association with the Ethereum-based play-to-earn metaverse game, The Sandbox.
The campaign includes a two-level contest where the top five winners will receive free Alpha passes for The Sandbox’s recently launched Alpha Season 3. The campaign commences on September 19, 2022.
In another news, Heru Finance, a global platform providing opportunity to invest in Web 3.0 was launched on Monday, in India and SEA markets.
Global Updates
- The US inflation-indexed bond yield has surged by 100 basis points since early August, causing renewed jitters in risky assets, including cryptos. And to the dismay of bitcoin bulls, the so-called real yield is likely to rise even further.
- Cryptocurrency exchange FTX is not authorized to provide services to customers in the UK, according to the country’s financial watchdog.
- Australian politician Andrew Bragg wants to prepare the country for the widespread use of China’s central bank digital currency, the digital yuan, according to a draft digital assets bill introduced on Monday.
- The Financial Times is reporting that authorities in South Korea are said to be asking Interpol to issue a ‘red notice’ for Do Kwon, the co-founder of the now-defunct stablecoin issuer Terraform Labs, as his current location is unknown.
Expert take
Edul Patel, CEO and co-founder of Mudrex said that Ethereum made a false breakout, indicating the buyer’s pressure. ETH has not yet acquired the strength to make a sharp move, so there are chances that ETH might trade sideways, he said.
“Not only are cryptocurrencies experiencing a downward trend, but stocks and equities are also going through a similar trend as investors worry over recession and interest rate hikes,” he said.
Tech View by Giottus Crypto Platform
Bitcoin (BTC) has been in a downtrend for months with intermittent relief rallies. The macro tailwinds have been a strong determiner for BTC movements with an increased correlation to stocks and an inverse correlation to the dollar index DXY. Uncertainties around the interest rate hike after the release of US CPI inflation data has clearly impacted investor sentiment. BTC is currently trading at $19,450 with a 12 per cent weekly decline.
BTC has been forming a series of bearish flags since its decline from $25,000 in mid-August. After trading for weeks below its descending trendline resistance, it made a fresh attempt for revival. BTC flipped the resistance line into support and rose to $22,000 before facing a steep correction. However, with the exception of a recent plunge to $18,400, the descending trendline continues to act as the support line for BTC.
BTC is currently trading above the .236 fib retracement, acting as its immediate support. Another stint upwards would require BTC to get through the $20,500 psychological resistance. In case bulls are successful in pushing the price up towards $25,000, a trend change could be confirmed. If macro headwinds continue to prevail, the price may move downwards bringing the previous lows of $17,600 into play with BTC testing new yearly lows.
Major Levels
Resistance: $20,000, $20,500, $21,000
Support: $19,300, $18,400
