Good morning. Here’s what’s happening:
Prices: Bitcoin and other cryptos fell to negative territory on Thursday night, following the Federal Reserve’s moderately raised interest rates.
Insights: After Wednesday’s Federal Reserve interest rate rise, crypto trading activity increased.
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Bitcoin’s Momentum Stalls for Post Rate Hike Momentum
Despite a price drop on Thursday, optimism continued to waft through crypto markets one day after the modest price rise by the U.S. central banks surprised many monetary policy observers.
Bitcoin traded recently at $23,500. This is 1.8% less than the previous 24 hours, but still above last week’s support of $23,000. Investors’ increasing optimism about inflation has led to the largest cryptocurrency rising by 40% this year. Markets were encouraged by the Federal Reserve’s 25-basis point (bps) increase. This bolstered investors’ confidence that bankers were succeeding at halting stubbornly high prices.
Mark Connors is the head of research for 3iQ in Canada. He stated that bitcoin trades below its 200-day moving mean despite recent gains.
“We believe this as we get closer to it.” [to the 200-day average] This is a significant catalyst for bitcoin and we don’t believe it will stop. [bitcoin] Connors stated that the market will continue to move higher.”
CoinDesk reported that bitcoin and S&P 500 were nearing a bullish technical signal – a “golden cross” – which Connor’s comments matched. A golden cross is when the security’s 50-day simple moving mean (SMA), moves above its 200 day SMA. This causes a cross on price charts
Ether did similarly, with a late dip to also drop 1.8% from Wednesday. Recently, the second-largest crypto by market value was changing hands at $1,650. Other cryptos also fell late in the day, either to flatten or fall into negative territory. To lose some of its gains this year, APT, the token for layer 1 blockchain Aptos plunged 6.5%. In January, APT rose faster than any other token. GALA, which is the token of Gala Games’ play-to-earn platform, fell 5%. Recently, the CoinDesk Market Index was down 1.8%.
The equity markets had a great day, with the tech-focused Nasdaq rising 3.2% and S&P 500 increasing 1.4% respectively. Investors’ optimism about inflation outweighed concerns about the disappointing fourth quarter results from Apple and Alphabet on Thursday and a slowerdown in once-fearsome technology sector. Edward Moya (senior market analyst at Oanda foreign exchange market maker) wrote that financial markets think inflation will fall faster than the Fed is currently thinking.
3iQ’s Connors noticed an increase in interest in 3iQ’s crypto exchange traded funds. This was part of a larger wave of investors who invested more than $200m in these types of products in January according to Crypto Compare, a crypto data provider group.
“We had more smiles,” Connors quipped. “We needed to bring in new coins to meet inflows. It was a good thing. It wasn’t crazy numbers. It was a healthy number.”
Connors stated that the current growth rate is sustainable. “I believe the [price] It’s so easy to get in. People who buy are the ones who want to be there. Despite the fact that we are up, there isn’t FOMO. This buyer layer is my favorite because they have done the work and they’ve gotten over the FTX scandal as a bad actor, a fraud.
The biggest gainers
|Loopring||LRC||1.3%||Smart Contract Platform|
|Polkadot||DOT||0.4%||Smart Contract Platform|
|Solana||SOL||-4.0%||Smart Contract Platform|
After Fed Decision, Crypto Trading Volume Rises
By Glenn Williams
After the Federal Open Market Committee (FOMC) rate determination, trading volumes for Bitcoin and Ethereum increased.
On Thursday, $32 billion in bitcoin was traded. This is a 20% increase on the previous day and 40% more than the $23 billion worth that BTC traded the day before the Fed decision.
Ether volume was 30% higher on Wednesday than it was before the FOMC announcement and 60% higher than its volume prior to that announcement.
All spot market data from exchanges shows that investors continue to be interested in assets, despite a challenging macroeconomic picture.
8:30 a.m. HKT/SGT(12:30 a.m. UTC): Index of Japan bank services purchasing manager index (Feb.
9:45 a.m. HKT/SGT(1:45 a.m. UTC): Index of Caixin services purchasing mangers (Jan.
21:30 p.m. HKT/SGT(1:30 p.m. UTC): U.S. unemployment rate (Jan.)
If you haven’t seen it yet, here is the latest episode of “First Mover” from CoinDesk TV.
Bitcoin Shortly Hits $24K; The Decentralized Social Network Nostr’s Damus is Listed on Apple App Store
After breaking through $24,000 in early hours, Bitcoin traded above $23,500. After the Federal Reserve’s recent interest rate decision, Ben Emons, NewEdge Wealth Senior Manager, joined the conversation. Sasha Hodder, Managing Partner of Hodder Law Firm, discussed the latest developments in FTX bankruptcy proceedings. Nostr, an innovative social network that is decentralized, was able to get its Damus app, which looks a lot like Twitter, listed in Apple’s App Store.
Crypto Winter: 91% plunge in VC and Other Investments January According to CoinDesk, crypto startups raised only $548 million in the last month. It remains to be seen how the FTX failure will impact industry fundraising.
Marathon Digital Miners Bitcoin For the First Time To Monetize The Recent Rally In January, 1,500 bitcoin were sold by a bitcoin miner.
The Crypto Market’s Post-Fed Rally continues as DeFi and Smart Contract Platform Sectors Star Uniswap’s UNI token was up 4.5%, Avalanche’s AVAX token was up 3.4%. The ether rose 3% on Thursday after unexpectedly moderate comments by Fed Chair Jerome Powell.
Bitcoin, S&P 500 Close In on Bullish ‘Golden Cross’ Signal: Bitcoin’s biggest rallies in the past started with a gold cross. However, not all gold crosses lead to a large rally.
OpenSea releases a suite of new tools for creator NFT drops: This new experience allows select creators the ability to include multi-stage minting phases and allowlist support, as well as personalized landing pages for NFT releases.