Market update

Crypto markets are still bearish after the Federal Reserve hiked interest rates by another 75 basis points. Rates are now headed towards 4.6% and the Fed is sounding very hawkish on bringing inflation down. A turnaround doesn’t seem likely in the short term with Glassnode’s latest report noting that rising volumes amid a bearish trend are a bad sign: “Whenever spot volume backs a downward trend, it tends to extend into  the near future, and a reversion requires substantial buying pressure.” The good news however is that adoption continues to grow and the current Crypto Winter can’t last forever. At the time of writing Bitcoin was down 2% for the week to trade around A$30,500 (US$19.7K) and Ethereum had lost 3% to trade at A$2,115 (US$1,360). Despite the price dips, around 51% of ETH holders are currently still in profit. XRP shot up (22%) on speculation about a resolution of its court case, Cardano lost 2% and Dogecoin gained 3% after Ethereum cofounder and Doge fan Vitalik Buterin suggested it could move to proof of stake. The Crypto Fear and Greed Index is at 20 or Extreme Fear.

Interest around the Ethereum merge saw a massive increase in market volume, with the seven day moving average spiking from A$26.7B (US$18.1B) on September 6 to A$42.8B (US$28.8B) on September 16. Unfortunately, everything tanked after the merge on macroeconomic news with inflation running at 8.3% in the US and markets bracing for a 0.75% to 1% rate rise. Bitcoin dipped as low as A$27.6K (US$18.5K) and finishes the week down 15% to trade around A$29,000 (US$19,450). Ethereum is back to mid-July prices, sliding 22% to A$2,030 (US$1,365). XRP was up 3% on hopes of a court victory against the SEC, Cardano fell 13%, Solana (-15%) and Dogecoin (-11%). The Crypto Fear and Greed Index is at 21, or Extreme Fear.

After a lacklustre few weeks, Bitcoin suddenly shot up 10% on the weekend due to a reported short squeeze. MicroStrategy announced its doubling down again, major buying from whales, and positive signs on traditional markets. Bitcoin is trading just over A$32,200 (US$22.2K) to be up 7% for the week (though it’s still lower than mid-August). The impending Ethereum merge (Google has thoughtfully created a countdown clock) has the token trading flat for the week to sit around A$2,500 (US$1,720). Positive sentiment could come to a screaming halt with the imminent release of the US inflation figures this week and a possible “sell the news” reaction following the Merge. XRP was flat, Cardano (-5%), Solana (+7%) and Polkadot (-4%). The Crypto Fear and Greed Index is at 25, or Extreme Fear.

Septem-bear is generally a pretty rubbish month for Bitcoin prices, with nine out of the past 12 years seeing prices finish in the red. The three outliers saw only modest gains too, apart from one outlier year where it increased 15%. On average Ethereum loses 12% in September and the overall crypto market cap loses 7.5%. Spiralling energy prices, the US dollar hitting new highs and sentiment tanking don’t seem to suggest this month will buck the trend either. The Bitcoin price has just been crawling sideways for the past week, trading in a $1,000 range. It finishes the week down 4% to trade just around A$29,500 (US$20,100). Ethereum increased 4% to trade around A$2,450 (US$1,665). Cardano leapt 9% on the news the Vasil hard fork has a date while XRP and Solana were flat. The Crypto Fear and Greed Index is at 23, or Extreme Fear.

Markets fell this week after Federal Reserve chair Jerome Powell indicated the Fed will continue its aggressive approach to curb inflation despite the “unfortunate costs.” “A failure to restore price stability would mean far greater pain,” he said. Bitcoin plunged below the US$20K mark (A$29K), the S&P 500 fell 3.4% on Friday while A$46B was wiped from the Australian sharemarket on Monday. The local market is also bracing for another half a percentage point interest rate rise next Tuesday. Bitcoin is currently down 8% for the week to trade around A$29,300 (US$20.2K) while Ethereum has fallen 9% to trade around A$2,240 (US$1,540). Most other coins fell including XRP (-6%), Cardano (-6%), Solana (-12%) and Polkadot (-6%). Synthetix climbed 17.8% on the back off news it can now survive on actual revenue. The Crypto Fear and Greed Index is at 24 or Extreme Fear.

The bear market rally ran out of puff on Friday with Bitcoin falling below the 200-week moving average. It’s currently down 14% for the week and trading around A$30,970 (US$21.3K). Ethereum fell 17% to trade around A$2,350 (US$1,620), possibly related to fears over decentralisation and transaction censorship in the fallout from the Tornado Cash sanctions. Traditional markets are in the red too due to macro factors including comments by the Federal Reserve Bank of St. Louis President James Bullard who said he favoured a 75-basis point hike in interest rates next month. The last hike of that magnitude saw crypto market turmoil. Everything else was down on the week, with XRP falling 12%, Cardano (-20%) and Polkadot (-19%). The Crypto Fear and Greed Index is at 29 or Fear, down from 45 last week.