After showing bearish momentum during yesterday’s indigenous day holiday, crypto markets continue to decline in price as BTC is struggling to hold support at $19k and ETH broke through the $1,300 level. The global cryptocurrency market cap saw a further decline of 1.38% today, with the current valuation at $921 billion.
Key Points:
- The global cryptocurrency market continues to show bearish signals as BTC and ETH struggle to hold support.
- Stock markets continue to underperform as the Fed’s aggressive monetary policy continues.
- While BTC and ETH are trading relatively low, now is an excellent opportunity to dollar-cost average your investments and long-term positions.
- The fear and greed index is at 24, signaling extreme fear but better conditions than last week.
Global Market Update
While stocks are showing slight bullish momentum today, crypto markets have yet to reverse their trend this week. While the S&P 500 opened in the red, the NASDAQ and Dow Jones are showing minor improvements this Tuesday.
A report by the Washington Post today suggests that the stock market’s underperformance is due to the Fed’s aggressive action when raising interest rates.
The Federal Reserve is moving in the most aggressive manner in decades, hiking interest rates five times since March. The report also suggests that two more aggressive rate hikes will likely come before the end of the year, preventing any reasonable recovery for stocks.
At this point, it seems almost counter-intuitive to continue and “fight” inflation by handicapping the stock market with aggressive interest rates while simultaneously printing trillions of dollars worth of currency. According to the Federal Reserve, “The FY [Fiscal Year] 2022 print order ranges from 6.9 billion notes to 9.7 billion notes.”
Logically, a way to fight inflation would be to stop printing billions of dollars worth of currency yearly. Rather than continue to hammer down the economy by increasing interest rates aggressively.
Looking at this fact in crypto tokenomics, imagine a cryptocurrency where the developers keep minting new tokens to use for themselves, only to continue increasing the buy/sell tax to “fight” inflation that they create in the first place.
Crypto Market Update
Bitcoin is trading at $19,103, down 1% in the past 24 hours. Its market capitalization is at $366 billion, with a 24-hour trading volume of $29 billion. The good news is the market manages to increase in momentum as the daily trading volume is up 27% in the past 24 hours.
Ethereum is in a similar position to BTC, with the prices relatively low at $1,280, but the 24-hour trading volume shows a substantial increase of 21%.
Today’s fear and greed index is at 24. As usual, it signals extreme fear, but the conditions are still better than last week when the index showed 20 points.
Now could be a great opportunity to dollar-cost average your long-term positions and pick up undervalued crypto assets, NFTs, or even Metaverse lands if you’re looking to bet on that sector.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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