Cryptocurrency Market August 6 – CHK Summary: Bitcoin maintains at $23,100, DCR leads the way

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2022-08-06 20:19:41

Bitcoin saw a rejection at the $23,500 resistance level yesterday, with US stocks closing the weekend in the green.

Cryptocurrency Market

Bitcoin has had a good recovery from the $22,800 level to reach the $23,100 level and has maintained it until now. This will be the push for the BTC token to target higher levels in the future.

Bitcoin price chart August 6, 2022

Analyst Michaël van de Poppe commented:

“There may be short-term corrections, but the trend is still up. The futures of the largest cryptocurrency in the market are showing signs of optimism on major time frames.”

However, data from the Binance order-book points to some concerns about whale activity as these entities are showing more performance. Bitcoin traders weighed in on the downside amid the constant rejection at $24,500. According to many veteran investors, the area around $20,000 will be the target to be targeted if the downtrend takes place.

Top 10 cryptocurrencies with the largest market capitalization on August 6, 2022

The cryptocurrency market on August 6 is mostly in the green. The most impressive in the past 24 hours is Decred’s DCR with an 85% increase, followed by Holo’s HOT with an 18% profit and NEAR with a 15% increase. Three other altcoins that are also recording double-digit gains on the day are THETA, SIL, and YFI with gains of 13%, 12% and 11% respectively.

Ethereum also has a steady recovery with 3.24% and is trading around $1,711. Other tokens in the top 10 by market capitalization such as XRP, BNB, ADA, SOL, DOT all kept stable compared to yesterday.

Investor sentiment in the cryptocurrency market is not too volatile. The Greed and Fear Index (FGI) continues to stay in the Fear zone with a threshold of 31.

Cryptocurrency Market FGI Index August 6, 2022

Macro factors

US stocks rose and fell continuously in a volatile session on Friday (August 5), after the US jobs report in July was much better than expected and investors assessed that the strong labor market could What does it mean for the US Federal Reserve’s (Fed) interest rate tightening campaign.

At the end of the session, the Dow Jones index advanced 76.65 points (or 0.23%) to 32,803 points. However, the index has remained bearish over the past week despite Friday’s rally. Meanwhile, the S&P 500 index lost 0.16% to 4,145 points and the Nasdaq Composite lost 0.5% to 12,657 points. Even so, both the S&P 500 and Nasdaq Composite were in the green in the first week of August.

The decline was offset by the gain of banking stocks, thanks to the hope that the rate hike will continue at a stable level. Energy stocks also gained, but technology stocks fell.

The US labor market added 528,000 jobs in July, easily beating the Dow Jones forecast for a 258,000 job increase. The unemployment rate in the US fell to 3.5%, lower than the forecast of 3.6%. Wage growth also accelerated more than expected, up 0.5% on the month and up 5.2% year-on-year, suggesting high inflation is likely to remain an issue.

US stocks fell early in the session following the jobs report, even as the report appeared to suggest the economy is not currently in recession. Job growth is expected to slow as the Fed continues to raise interest rates to keep inflation in check, however, this report suggests the labor market is still doing well. That means the central bank could act more aggressively at its next meeting.

Friday’s jobs report is an important one as it is one of two that the central bank will look at before deciding how much to raise interest rates at its September meeting. Indeed, investors Investors have forecast the Fed will take a tougher stance. Policymakers will have another jobs report and two more CPI reports to consider before making their next rate decision.

The major indexes all posted their best month since 2020 in July on hopes the Fed would slow the pace of rate hikes. The S&P 500 jumped 9.1% in July.

U.S. inflation was already high in 2022, and the Fed tried to curb the problem by raising the federal funds rate. There is a lot of debate about whether the US is in a recession after two consecutive quarters of negative gross domestic product (GDP) growth.

Against the backdrop of the Ukraine-Russia war, tensions between China and Taiwan, and a bleak global economy, US Democrats have introduced new legislation to address climate change and health care is known as the Inflation Reduction Act. Democrats announced that the $739 billion Inflation Reduction Act would “make a historic payment toward deficit reduction aimed at fighting inflation.”

After the law was revealed, 230 economists sent letters to House and Senate leaders warning that the proposed policies would actually boost inflation. The letter emphasized that there was an urgent need to rein in US inflationary pressures, but further noted that “the “Inflation Reduction Act of 2022” is a misleading title applied to a bill that the possibility of a complete counterproductive.”

Gold prices fell nearly 1% on August 5 as a positive US jobs report eased fears of a recession and raised hopes the Fed will continue its aggressive tightening action. At the end of the session, the spot gold contract dropped 0.92% to $1,774/oz. Gold futures lost 0.87% to $1,791 an ounce.

Oil prices rose slightly on the same day, bouncing off their lowest levels since February 2022, as concerns about supply shortages outweighed forecasts of a drop in fuel demand. Ending the session, Brent oil contract advanced 0.85% to 94.92 USD/barrel. The WTI oil contract added 0.53% to $89 a barrel.

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