Crypto Market – Overview For Week 43
We report strong performance across both US Equity and Crypto markets last week. NASDAQ closed higher at $11.102 (⬆️2.24%) and S&P at $3.901 (⬆️3.97%) last Friday. Bitcoin (BTC) ended the week higher by ⬆️5.46%, closing above $20.000 mark on Sunday, while Ethereum (ETH) jumped by more than ⬆️15.0% to $1.590. Crypto Market and Equity Market started the week subdued but mid-week brough fresh price volatility caused by several events.
Inflation forecasts for October 2022 indicated lower CPI readings are coming up with no increase to the core US CPI. Moreover, the US Treasury considered supplying the market with short-term Treasury bills to combat the current shortage, indicating market specific quantitative easing (QE). Next, the UK has finally a more stable political outlook with Rishi Sunak as the new “pro-crypto” PM. Lastly, Twitter announced it plans to introduce own crypto wallet and Elon Musk has finally closed the takeover deal. All these events accompanied with few Ethereum (ETH) whales reported to be pushing the ETH price higher, took crypto markets off to new highs.
Crypto Market And Equity Market Performance
This week, the FED is expected to move the fund rates by the fourth 0.75% hike. It is also expected to increase the rates further by another 0.50 – 0.75% hike in December 2022 and 0.50% rise in February 2023. To pause the hikes, FED needs to see that the inflation is beginning to ease on a monthly basis towards its 2% target. Currently, the FED fund rate target range stands at 3.00 – 3.25% and the last median projection among FED’s board members for a target range midpoint remains at 4.4% at the end of 2022 and 4.6% at the end of 2023.
After another revision, we expect the US CPI cooled to 8.11% in October 2022, with core CPI also lower to 6.58%, compared to 8.20% and 6.64% in September 2022, respectively. Although the US GDP rebounded in the third quarter, there are strong signs that consumer demand is weakening with business activity contracting for a 4th straight month, which in turn is helping to ease supply logjams and consequently pushing container costs for shipping services lower.
Bitcoin price
Source: altFINS.com
NASDAQ
Source: Yahoo Finance
US CPI
US Fund Rates
Source: Refinitiv | Reuters, Sep. 14, 2022 | by Vincent Flasseur
Crypto Market Sentiment
The crypto market sentiment (measured by Crypto Fear & Greed Index) moved up to 31/100. Indicating Fear, compared to a week ago, when we saw 22/100, which represents an Extreme Fear. The total crypto market cap has finally crossed the psychological $1 trillion mark again. And ended at 1.024 trillion on Sunday’ close, almost ⬆️10.0% higher compared to a week ago. Ethereum (ETH)’s dominance had increased to 19.4%, closing higher by more than ⬆️10.0% compared to the previous week. While Bitcoin (BTC) dominance had decreased by more than ⬇️2.0% to 39%.
WHAT TO WATCH FOR: The next monetary policy meeting for the ECB: December 15th, 2022; FED this week on November 01-02nd, 2022; US Labour Market Report for October will be out on November 04th, 2022 at 08:30 a.m. ET. The next US CPI release for October 2022 is scheduled for November 10th, 2022.
Remember, the market tends to be 1-step ahead of any major event, so do not miss new opportunity and stay alert of the crypto market developments. It will be important to remain selective on your investments during this monetary policy shift, and as it is with every crypto market correction, be ready to enter the crypto market at much lower valuations.
Know when to enter the market – be ready – get more insights, trends, and research reports at altFINS.com.
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