The latest red-hot inflation numbers have put global investors on edge about the potential actions by the US Fed in its meeting next week. The FOMC is likely to push interest rates by 75 basis points, while a 100-bps hike can not be ruled out.
Barring the US dollar-pegged Tether, all other major crypto tokens were trading lower on Thursday. Shiba Inu and Avalanche dropped 3 per cent each, whereas Bitcoin, Polkadot and Polygon shed 2 per cent each.
The global cryptocurrency market cap was trading lower at $990.19 billion, dropping almost a per cent in the last 24 hours. However, total trading volume tumbled as much as 23 per cent, close to $78.30 billion.
Expert Take
Inflation rates once again influenced the global cryptocurrency market this week which led to the global crypto market cap again falling below $1 trillion as it reacted to the US consumer price index, said Prashant Kumar, Founder and CEO weTrade.
“The two top cryptocurrencies – Bitcoin and Ethereum – that had made gains over the weekend saw a decline,” he added. “All eyes are on the Ethereum Merge which is scheduled to be completed today.”
Global Updates
A South Korean court has issued an arrest warrant against Do Kwon, the co-founder of the now defunct stablecoin issuer Terraform Labs, according to the financial crimes unit of the Supreme Prosecutors’ Office.
Cryptocurrency exchange FTX is raising capital in parallel with a potential acquisition, according to a person familiar with the matter.
Crypto markets appeared to be in suspension on Wednesday as traders awaited the Ethereum blockchain’s historic Merge – the network’s transition to a proof-of-stake (PoS) network, expected to take place in about 12 hours.
In April 2021, China hosted what cryptocurrency and art media outlets heralded as the world’s first “major” crypto art exhibit.
Tech View by Giottus Crypto Platform
Ethereum (ETH), the largest smart contract-based blockchain for decentralized applications, is about to go through one of the biggest events in its history today. The Merge – Ethereum’s transition from a Proof-of-Work based network to a Proof-of-Stake network has been initiated amidst a slew of adverse macro movements.
It will be interesting to note ETH’s price trends at such a crucial stage. ETH is still trading 23 per cent below its August high of $2,000. As of 8 am today, ETH is trading at $1,610, up by 1 per cent in the last 24 hours.
Chart-ETH
After reaching a high of $2,000 in mid of August, ETH created a series of lower highs to bottom at $1,400 before it started charting an upward trend again. Since then, ETH has been moving in an ascending parallel channel and has defaulted twice to break below the channel. So far, the upper trendline resistance in the channel is acting as a strong resistance, and ETH has been unable to break out. ETH has broken below the channel, and the .618 fib retracement is currently acting as its immediate support.
Increased whale activity and the influx of institutional investments in the wake of staking gains may brighten ETH’s prospects. However, Ethereum needs to overcome the psychological resistance of $1,700 to initiate another price rally. In case of a selloff today, $1,500 should act as immediate support though it can break if the Merge is unsuccessful or delayed.
Major levels
Resistance: $1,650, $1,700
Support: $1,550, $1,490
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)
