Crypto markets respond to latest US inflation numbers
Fed Chair Jerome Powell shared some vexing news with colleagues at Capitol Hill yesterday.
“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” he said.
“If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.”
In short, if most of the inflation indicators continue flashing red, ongoing rate hikes are inevitable. The latest indicator to flash was jobless numbers from February that came in lower than expected, meaning that the US economy still has some cooling to do, say economists.
Crypto and traditional risk-on markets responded to the news with red candles. Bitcoin and Ethereum are down since yesterday by 1.69% and 0.69%, respectively.
The leading crypto by market cap is trading for $22,012 this morning, while Ethereum is valued at $1,554.
The rest of crypto is following a similar trading pattern. Analysts say that some consolation to yesterday’s news may be the less severe than expected reaction to Powell’s remarks, given the amount of de-risking and deleveraging that have happened in the last few months.
Yesterday’s Crypto AM Daily in association with Luno
In the markets
The Bitcoin economy
*Data can be found at https://terminal.bytetree.com/
Total crypto market cap
The total capitalisation of the entire cryptocurrency market this morning was $1,006 billion.
What Bitcoin did yesterday
We closed yesterday, March 7, at a price of $22,219. The daily high yesterday was $22,527, and the daily low was $22,011.
Bitcoin market capitalisation
Bitcoin’s market capitalisation this morning was $425.316 billion. To put it into context, the market cap of gold is $11.997 trillion and Tesla is $593.93 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $24.628 billion. High volumes can indicate that a significant price movement has stronger support.
Volatility
The price volatility of Bitcoin over the last 30 days is 39.15%.
Fear and Greed Index
Market sentiment today is 50, in Neutral.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 43.69. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 43.94. Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price – an RSI reading of 30 or below indicates an oversold or undervalued condition.
Convince your fam: Soundbite of the day
“Cryptocurrencies and, more generally, the mindset of innovation that led to their creation and growth in the marketplace are exciting for the future of payments.”
Reed Luhtanen, Executive Director, US Faster Payments Council
What they said yesterday
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Cautionary Notes
It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. Morning Wire, Crypto AM and Luno always advise you to obtain your own independent financial advice before investing or trading in cryptocurrency.