Crypto Markets 5/12 CHK: Bitcoin closes the week above $17,000, altcoins gain momentum

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2022-12-05 15:18:45

Bitcoin (BTC) bulls successfully brought the weekly close above $17,000 as volatility looks to be returning to the market.

Cryptocurrency Market

Market data shows that Bitcoin successfully closed the week above $17,000 and continued its positive momentum, recording a second consecutive week of gains. As of now, BTC price is hovering around $17,300 with 24-hour volume reaching $21.4 billion.

Bitcoin Price Movement Last 24 Hours

With macro signals still ahead, Bitcoin is starting to show signs of volatility appearing on the low time frame. Popular trader, Cheds, has noted that the Bollinger Bands volatility indicator is ticking on the 4-hour chart. Narrowing Bollinger Bands signal that volatility is imminent. The indicator band on the 4-hour chart is at its narrowest since Nov. 27, just before BTC/USD rallied $1,000.

Meanwhile, Crypto trader Tony still holds to his short-term BTC price theory.

“Simply nothing has changed in the last few days. We’re focusing more on the EQ/mid range, but I wouldn’t be surprised to see price bounce up to form an SFP and then drop back down.”

Previously, Crypto Tony marked the $21,500 mark as the target to aim for if the bulls are to regain control and change the trend.

In the short-term, the altcoin market is also showing bullish signals as the market’s largest asset, Bitcoin, closes the week in the green. The most prominent in the top 100 is Celo (CELO), a complete layer-1 proof-of-stake (PoS) blockchain network, which has surged 24%, erasing all losses in the past week.

Top 10 tokens by market capitalization December 5, 2022

Other projects such as EthereumPoW (ETHW), ImmutableX (IMX), Cronos (CRO), Internet Computer (ICP), Flow (FLOW), THORChain (RUNE), Mina (MINA)… also increased slightly from 3-6%.

Market sentiment did not see much change as the Greed and Fear Index (FGI) was still in the Fear zone at 26 points.

Cryptocurrency Market FGI Index December 5, 2022

Macro factors

Japanese stocks opened slightly lower on Monday morning, as investors weighed in on the possibility that the Fed will continue to tighten monetary policy. In the first 15 minutes of trading, the Nikkei – 225 index in Tokyo fell 8.98 points (0.03%) to 27,768.92 points.

Korean stocks also fell at the opening of the new trading week along with worries about US interest rate policy. The Kospi in Seoul fell 2.34 points (0.10%) to 2,431.99 in the first 15 minutes of trading.

In China, the major indexes were better as traders welcomed moves to ease many of the COVID-19 containment measures in the country, which has created many obstacles for the world’s second-largest economy. . In Hong Kong, the Hang Seng index rose to 546.33 points (2.93%) to 19,221.68 points. The Shanghai Composite Index in Shanghai also increased 25.77 points (0.82%) to 3,181.92 points.

Stock markets lost some of their bullish momentum late last week, after a strong US jobs report in November challenged the possibility of a less hawkish Fed.

Markets are now betting that the Fed rate will peak at 5% and the European Central Bank rate at around 2.5%.

According to observers, the combination of labor market resilience and steady wage inflation increases the risk that the Fed will issue a rate forecast higher than 5% at its upcoming meeting on Tuesday. 12/14./

The pace and scale of interest rate hikes by major global central banks picked up again in November 2022, as policymakers determined to cool record-high inflation. .

The central banks of six of the 10 countries with the world’s most traded currencies raised interest rates by a total of 350 basis points last month.

The US Federal Reserve (Fed), the Bank of England (BoE), the Reserve Bank of Australia, Norway’s Norges Bank, Sweden’s Riksbank and the Reserve Bank of New Zealand all raised interest rates this week. November.

If counting for the whole year of 2022, by the end of November 2022, central banks in 10 developed economies (group of G10) have raised interest rates by a total of 2,400 basis points.

On the other hand, the European Central Bank (ECB), the Bank of Canada, the Swiss National Bank and the Bank of Japan did not hold interest rate meetings in November.

“Interest rates will continue to rise until 2023. Central banks’ determination to reduce inflation suggests policy rates will continue to rise,” said Alexandra Dimitrijvic, a specialist at S&P Global Ratings. high.”

Global financial markets have been volatile in recent weeks, as investors try to gauge the path of interest rate hikes by the Fed and other major central banks, while recession fears grow. Global growth is growing.

Some signs that inflation may be slowing down in the US have buoyed markets in recent days, with Fed officials scheduled to meet on December 13 and 14. .

On November 30, Fed Chairman Jerome Powell said the institution could slow the pace of rate hikes “as soon as December.”

Data from emerging markets central banks also show a similar pattern. Eight of the 18 central banks raised interest rates by a total of 400 basis points in November, from just 325 basis points in October. Even so, the number is still lower than the more than 800 basis points daily. months in June and July.

Indonesia, South Korea, Mexico, Thailand, Malaysia, the Philippines, Israel and South Africa all raised interest rates in November. This shows that the wave of policy tightening has shifted to Asia and is gradually moving away from the region. Latin America and Europe, where this cycle is coming to an end.

Calculations show that central banks in emerging markets have raised interest rates by a total of 7,165 basis points so far this year, more than double the 2,745 basis points for the whole of 2021.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) decided to keep oil output unchanged at a meeting on December 4, after the group of the world’s leading industrialized countries (G7 ) consensus on a price ceiling for Russian oil.

Earlier in October, OPEC + angered the US and other Western countries with its decision to cut oil production by 2 million barrels per day, equivalent to 2% of world demand, effective from November. 2022 to the end of 2023.

After this decision was made, the US accused OPEC + and one of its leaders, Saudi Arabia, of siding with Russia despite its conflict with Ukraine.

However, OPEC+ argued that the reason it cut production was because of the weakening global economic outlook. Oil prices have fallen since October 2022 amid slowing Chinese and global economic growth and an environment of higher interest rates.

On December 2, the G7 nations and Australia imposed an oil price ceiling of $60 per barrel on Russian crude oil shipped by sea, in a move aimed at curbing the “White Country’s” oil revenue. positive” while maintaining the flow of Russian oil on the global market.

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