Overview
- Bitcoin tanks.
- NASDAQ tanks.
- S&P 500 tanks
- Everything tanks.
Oh dear. Or is it? Having broken out of a descending wedge pattern on the back of Wednesday’s FOMC meeting, Bitcoin crashed back to earth with a bang yesterday, as tech stocks, in particular, experienced one of the sharpest pullbacks in over a year.
How’s that for an ugly candle?
Suffice to say, the high volume you can see was the result of longs getting totally REKT. In fact, yesterday saw the highest instance of long liquidations since January 2022:
Meanwhile, the Dollar Index (DXY) is testing the highs again, just about poking its head above a key resistance level under which it had been consolidating for the past week.
Which begs the question, why is this happening? After all, the FOMC meeting on Wednsesday seemed to provide the market with some shortlived relief.
Some analysts are pointing to rising inflation across the Atlantic as a key driver of this recent sell-off event.
Yesterday, the Bank of England announced it would raise interest rates by 100 basis points in an effort to drive down inflation, which is estimated to be at around 10%. It is the single largest rate hike since the 2008 financial crisis, and to add insult to injury, they have also acknowldged that a recession is practically unavoidable.
Whether this had such a direct effect on US markets is unclear, but it points to a clear global trend that investors will be keen to mitigate against themselves against. Risk on, for now, is definitively not back on.
Crypto Market update 🌍
Well, this will be fun…
Yep, as you can see, apart from Ancor protocol, 9 out of the top ten ‘notable gainers’ were stabelcoins which pretty much tells you everything you need to know.
But how’s this for an analogy:
| Bitcoin Fear and Greed Index | 22 Extreme Fear |
| “Crypto” Google Trends | 33 (36) |
| “Bitcoin” Google Trends | 42 (46) |
Newswatch 📰
With Mayor Adams having positioned himself as the ‘pro-Bitcoin’ candidate in the run up to the recent Mayoral election, pledging to make NYC the home of crypto innovation in the country, the state is now considering a moratorium on all Proof-of-Work mining operations.
UST adoption continues to with its unstoppable momentum…
NFT volume shows no sign of slowing down:
https://twitter.com/cointelegraph/status/1522452109043507200?s=21&t=-j8-ZsUgW5lS1SSMRuwq1g
The Luna Guard Foundation continues to put its money where its, buying $1.5bn worth of Bitcoin across the past few days.
El Salvador approved its first license for Qredo to operate as a Bitcoin service provider
Bitcoin.com raises $33.6 million in private token sale
$410 million has been liquidated from the cryptocurrency market in the past 24 hours.
Block Inc misses on its earning report
Banter’s take
It’s pretty grim out there: macro and technicals are all pointing in the same direction, and its hard to see a catalyst that will pull markets out of this downward slump. Time to buy the dip? At the very least, it might be time to slowly Dollar-Cost-Average (DCA) into fundamentally sound projects, but in the understanding that there could be a while yet of continued downside action – you don’t want to try and catch a falling knife, but average in over time and bring down your cost basis.
