Cryptocurrency Market August 10 – CHK Summary: Bitcoin suddenly plummeted, erasing all gains from the rally at above 24,000 to below 23,000

 222 total views

2022-08-14 14:51:01

After yesterday’s exciting rally (August 9), Bitcoin could not continue to break the old resistance lines to bounce higher.

Cryptocurrency Market

The cryptocurrency market in the previous session had a bit of positive volatility as investors were looking forward to the July CPI report to be released today (August 10). The report will shed light on whether aggressive US Fed rate hikes are effective in staving off inflation and how it could have an impact on the size of future rate hikes.

Bitcoin (BTC) price after peaking at $24,203 has unexpectedly dropped to $22,800 From a technical analysis point of view, the August 9 pullback was simply a test of lower support after the S flip The most recent /R over the past week and large-cap assets like BTC continue to trade in their previously stable ranges.

Bitcoin price movement on August 10, 2022

According to market analyst Michaël van de Poppe, the fear surrounding the August 10 CPI is “unfounded” and once the retest is complete, the BTC price will rise to $28,000.

The largest altcoin in the market – Ethereum, after benefiting from the FOMO sentiment of The Merge event, has also returned to the $1,6700 area. The thought that ETH would continue to break new higher areas but this altcoin suddenly turned down 5.69% in just 24 hours. Currently, the ETH price has lost at least more than 10% from the peak of $1,800 in the previous days.

Top 10 cryptocurrencies with the largest market capitalization on August 10, 2022

Other altcoins in the top 10 by market capitalization also experienced strong volatility after Bitcoin’s decline. BNB -2.34%, XRP -3.98%, ADA -4.9%, SOL -6.9%, DOT -5.82%. The biggest loser in the last 24 hours was Curve’s CRV token DAO Token with a nearly 10% drop, followed by Helium’s HNT (-8.9%), Symthetix’s SNX (-8.2%) and Kusama’s KSM and Holo’s HOT both recorded an 8% drop. A host of other altcoins that are losing 7% on the day include ROSE, ATOM, FIL, and HBAR.

The market sentiment is quite sensitive when falling seriously. The Greed and Fear Index (FGI) dropped 11 points from yesterday and is currently still at the Fear zone.

The Greed and Fear Index (FGI) August 10, 2022

Macro factors

Earlier in the week, Tesla CEO Elon Musk suggested that the July data would reflect the US peaking in inflation. Right now, there is a consensus that the July data will be lower than the record 9.1% figure seen in June. Prices of energy commodities (oil, natural gas) have dropped significantly. in July and the Fed hopes that the previous consecutive 0.75 basis point increase will counter the price spikes in other parts of the economy.

US stocks fell on Tuesday, as investors received a series of disappointing business reports ahead of key inflation results. Closing the session, the S&P 500 fell 0.42% to 4,122 points, while the Nasdaq Composite lost 1.19% to 12,493 points. The Dow Jones Industrial Average fell 58.13 points, or 0.18%, to 32,774. It’s been a tough week for chip companies. On August 8, a lower-than-expected revenue forecast from Nvidia weighed on the group, and stocks extended Tuesday’s decline.

The S&P 500 has rallied for the third straight week, but earnings season has brought warnings about demand from major corporate executives. Investors are closely watching to determine the economy’s response to the US Federal Reserve’s (Fed) fight against inflation.

Some Nasdaq Composite stocks were also negatively affected. Novavax shares tumbled 30% after slashing its full-year revenue outlook due to falling demand for a Covid-19 vaccine. Upstart shares fell more than 11% after the consumer lender announced second-quarter results that fell short of expectations in both profit and revenue.

Investors are waiting for the latest results of the consumer price index CPI in the US in July, expected to be announced today (August 10). The report is expected to show a slight drop in inflation, partly thanks to falling oil prices, which could help the market anticipate the Fed’s next steps. US bond yields also rebounded ahead of the release of the monthly CPI report.

Prior to the report, the spread between 2-year and 10-year US Treasury yields continued to widen, with 2-year yields moving higher than 10-year yields. The fact that the two-year maturities are higher means that the yield curve has inverted, and that is sometimes a signal of a recession.

In the Asia-Pacific region, shares fell in early trade on Wednesday as China released inflation data. China’s producer price index rose 4.2 percent in July from a year ago, lower than the 4.8 percent gain predicted in a Reuters poll. Meanwhile, consumer prices rose 2.7% in July year-on-year in 2021, the highest since July 2020.

Oil prices eased slightly on August 9 after an unusually volatile session on concerns that a weakening economy could dampen demand on news that some oil exports have been suspended on the pipeline. Druzhba from Russia to Europe transiting in Ukraine. Ending the session, Brent oil contract dropped 0.4% to 96.31 USD/barrel. WTI oil contract lost 0.3%) to 90.5 USD/barrel.

Gold prices rose slightly on the same day, supported by a weakening dollar, while market participants awaited US inflation data. At the end of the session, the spot gold contract advanced 0.4 percent to $1,794 an ounce. Gold futures added 0.4 percent to $1,811 an ounce.

A weaker dollar makes gold less expensive for foreign buyers. The ICE US Dollar Index – a measure of the dollar’s performance against six other major currencies – fell 0.3%.

#Cryptocurrency #Market #August #CHK #Summary #Bitcoin #suddenly #plummeted #erasing #gains #rally

Related Posts

Leave a Reply

Your email address will not be published.

Close Bitnami banner