price action
Bitcoin (Bitcoin) continued its recent rise, topping $21,000 at a time after Canada’s central bank hiked its main interest rate less than expected, despite disappointing earnings late Tuesday from Google parent Alphabet and software giant Microsoft. The largest cryptocurrency by market cap recently traded around $21,700, up more than 2% over the past 24 hours after the Bank of Canada approved a 50 basis points (bps) hike instead of 75 bps. The bank expressed concern about the slowdown in the economy. Central bankers around the world have tried to tame inflation without triggering a deep recession. On Tuesday, BTC surpassed $20,000 for the first time since Oct. 5.
Ether (ETH) recently changed hands above $1,550, up more than 5% from Tuesday’s same time, and continuing its rise of more than 11% from the following day. The second largest crypto by market value has hit its highest level since mid-September.
Most major altcoins were well in the green, with popular meme coins DOGE and SHIB up more than 12% and 4%, respectively. The rise of the former comes amid the imminent completion of the acquisition of social media platform Twitter by billionaire entrepreneur and DOGE enthusiast Elon Musk.
The CoinDesk Market Index (CMI)a broad market index that measures the performance of a basket of cryptocurrencies is up 3.09% over the past 24 hours.
macro view
In traditional markets, US stocks slumped after rising for the previous two days as investors reflected on the tech industry’s struggles, which are likely to continue. Competitive social media platform.
-
Metaplatforms (FB) reported revenue of just $285 million for its Facebook Reality Labs (FRL) business, which includes its augmented and virtual reality operations, according to its earnings report released Wednesday. That was less than consensus analyst estimates of $406 million and down from $452 million in the second quarter.
-
That Tech-focused Nasdaq fell about 2% during the S&P500, which has a strong tech component, fell 0.6%. That Dow Jones Industrial Average (DJIA) was about flat.
-
Both Microsoft and Alphabet The earnings results negated a not too bad outlook for the economy,” wrote Edward Moya, senior market analyst at forex market maker Oanda.
For raw materials, Brent crude, a measure of energy markets, rose to $94 a barrel, up about 0.27% from the previous day. Three weeks after OPEC announced production cuts, investors remain concerned about energy prices. Brent crude is up more than 15% year-to-date. Safe-haven gold rose 0.7% to $1,664 an ounce.
Housing starts fell nearly 11% in September, continuing a recent trend that some US monetary policy observers are hoping will allow the Federal Reserve to scale back its recent monetary tightening. The latest drop comes as mortgage rates surpass 7% and hit a two-decade high.
The University of Michigan’s monthly Consumer Sentiment Index will offer fresh insights into the public’s perception of the economy on Friday. “Bitcoin is now comfortably above the $20,000 level and will now try to stabilize here until [Fed’s Federal Open Market Committee] Meeting,” Moya wrote. “If risk appetite remains healthy, Bitcoin could surge higher towards $22,500.”
Current prices
● CoinDesk Market Index (CMI): 1,018.43 +2.9%
● Bitcoin (BTC): $20,723 +3.1%
● Ether (ETH): $1,551 +5.8%
● S&P 500 daily close: 3,830.60 −0.7%
● Gold: $1,668 per troy ounce +0.9%
● Ten-Year Treasury Yield Daily Closing: 4.01% −0.1
Bitcoin, Ether and Gold prices are measured around 4:00 p.m. New York time. Bitcoin is the CoinDesk Bitcoin Price Index (XBX); Ether is the CoinDesk Ether Price Index (ETX); Gold is the COMEX spot price. For CoinDesk indices, visit coindesk.com/indices.
Technical recording
Bitcoin and Ether Price Rise May Not Last: Analysis of Crypto Markets
By Glenn Williams Jr
Bitcoin and Ether, the two largest cryptocurrencies by market cap, are up 3.3% and 6.7%, respectively, over the past 24 hours. On Tuesday, BTC surpassed $20,000 for the first time since Oct. 5, while ETH surpassed $1,500 for the first time since the Sept. 15 merger, the technological overhaul of the Ethereum blockchain. Whether a new longer-term upleg is underway or whether BTC and ETH prices are likely to return to the mean remains unclear.
Technically, both BTC and ETH surpassed traditional “overbought” metrics on their hourly charts and have since declined. The Relative Strength Index (RSI) shot above 90 on their hourly charts for both BTC and ETH.
Since these levels are well outside the range of normal hourly RSI movement, the RSI could cool off, at least from an intraday perspective. The current daily RSI readings for BTC and ETH are both around 71.
Read the full technical take from CoinDesk analyst Glenn Williams Jr.
Altcoin Summary
-
Crypto Markets See Biggest Short Liquidations in 15 Months; Ether Leads Token Surge: Crypto exchange FTX alone saw around $500 million in liquidations, a larger number than usual. The liquidations may have contributed to a short squeeze as the prices of several tokens such as Ether (ETH) and Dogecoin (DOGE) have skyrocketed over the past 24 hours. Read more here.
-
Gaming DAO Merit Circle Burns Nearly $170M Worth of MC Tokens: Merit Circle offers play-to-earn players “bursaries” where players, often in developing countries, borrow a non-fungible token (NFT) that serves as an entry fee into the game. In return, the player has to send back part of their earnings in the game. The move will phase out 200 million of Merit Circle’s total stash of 1 billion tokens. Read more here.
Trending posts
-
Listen 🎧: Today’s CoinDesk Markets Daily podcast discusses the latest market moves and takes a look at regulatory considerations.
-
Bitcoin jumps to $21,000 after soft US data, less Hawkish Bank of Canada: The world’s largest cryptocurrency by market value is up more than 7% on Wednesday to its highest level in more than a month.
-
In upside-down market logic, positive US GDP could be negative for crypto: Analysts estimate the US economy grew 2% in the third quarter of the year, reversing a streak of two consecutive quarters of contraction.
-
Ethereum’s Layer 2 rollups reduce costs but underestimate the risks: Ethereum’s established rollup networks cannot currently claim to be “borrowing” Ethereum’s security.
-
Binance launches native Oracle network starting with BNB chain The exchange said its oracle service will directly benefit around 1,400 applications running on BNB Chain.
-
Axelar and Polygon Supernets join forces to provide cross-chain interoperability: This allows developers to build their applications across multiple blockchains.
-
The largest crypto fund A16z loses 40% in the first half of 2022, The Wall Street Journal reports: Andreessen Horowitz has slowed his crypto investments, making just nine in the third quarter compared to 26 in the fourth quarter of last year.
-
A Majority of US Voters Want More Crypto Regulation, Poll Shows: The results show more voters want lawmakers to treat cryptocurrency as a “serious and valid part of the economy” rather than a “mechanism for fraud” and other crimes.
CoinDesk Market Index
Biggest Winners
Biggest Loser
Sector classifications are provided via Digital Asset Classification Standard (DACS), developed by CoinDesk Indices to provide a reliable, comprehensive, and standardized classification system for digital assets. That CoinDesk Market Index (CMI) is a broad index designed to measure the market capitalization-weighted performance of the digital asset market, subject to minimum trading and listing requirements.
