Cryptocurrency market on September 16 CHK: Bitcoin slips from $20,000, ETH plummets after The Merge

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2022-09-17 14:09:42

Bitcoin (BTC) lost the support of $20,000 in today’s trading session, ETH also suffered the same decline shortly after The Merge started.

Cryptocurrency Market

Market data shows that Bitcoin’s decline began last night when it created a red candle that crashed from $20,131 to $19,600 in just an hour. Currently Bitcoin price is trading around $19,791 with 24-hour volume reaching a value of $32 billion – a sharp 19.25% drop from the previous day.

Bitcoin price movement on September 16, 2022

The largest cryptocurrency has been unable to regain lost ground after US inflation data on September 13 was higher than expected, sending risk assets into a tailspin.

Bitcoin is down 13.5% from its weekly high, and many investors are still worried about further losses. Popular trader Crypto Ed summed it up in his latest YouTube update: “Unless BTC can rally above or back to the $20,800 region, it still faces the risk of further downside.”

Trader Il Capo of Crypto once again marks $23,000 and $16,000 as key levels on either side of the spot price.

“Perhaps the market will remain calm until the Fed announces interest rates next week,” continued Michaël van de Poppe, an independent analyst, on the market’s macro outlook.

Signs that the hype from Ethereum’s The Merge event seems to have disappeared and market participants are now awaiting the upcoming meeting of the US Federal Reserve (Fed) next week.

The Merge is over, the transition from proof-of-work (PoW) to proof-of-stake (PoS) was successful, but Ethereum (ETH) plummeted in just 12 hours. The market’s largest altcoin has lost $2,000 and is trading around $1,474. The 24-hour trading volume spiked with selling pressure at a high, indicating a sell-off from whales holding ETH.
Over $60 million in ETH was liquidated in less than an hour, creating downward pressure on the rest of the altcoin market. In the last 24 hours, liquidations exceeded $150 million.

According to data from CoinAnalyze, around $77 million in liquidations occurred on OKEx, while FTX came in second with around $40 million in ETH liquidations over the past 24 hours. The majority of them were longs with about $98.6 million liquidated in the last 24 hours, while the market saw only about $48.3 million in short liquidations.

Currently, statistics show that the market value of all tokens in existence is $965.42 billion, down sharply from $1.16 trillion prior to The Merge.

Top 10 tokens leading the cryptocurrency market on September 16, 2022

Meanwhile, the altcoin market did not have a positive reaction to Ethereum’s The Merge event. With Bitcoin losing the $20,000 support, most altcoin projects are in the red.

Leading the decline of the top 100 is Ravencoin, which has lost more than 14% in the past 24 hours. However, on the 7-day timeframe, the project is still recording an impressive growth rate of up to 54%. Followed by Gnosis (GNO), Ethereum Classic (ETC), eCash (XEC), NEAR Protocol (NEAR), Decred (DCR) all lost more than 5% of their value on the day.

The top 10 tokens in terms of market capitalization are also in the red. BNB -1.41%, XRP -4.79%, ADAD -2.65%, SOL -4.29%, DOGE -2.24%.

Market sentiment is at the lowest level since the beginning of the week as selling momentum and negative news continue to take place. The Crypto Market Greed and Fear Index (FGI) has plunged into the “Extreme Fear” zone with the 20-point mark.

Cryptocurrency Market FGI Index September 16, 2022

Macro factors

The US stock market fell in Thursday trading session (September 15), as investors mulled over mixed economic data and continued to be haunted by interest rate worries. Crude oil prices fell more than 3% due to the appreciation of the US dollar and concerns about energy demand.

At the close, the S&P 500 index fell 1.13%, to 3,901.35 points. The Dow Jones Industrial Average lost 173.27 points, or 0.56%, to 30,961.82 points. The Nasdaq index fell 1.43% to 11,552.36 points.

Shares of software company Adobe put downward pressure on Nasdaq and S&P 500, losing more than 16% after the company announced its acquisition of Figma for $20 billion. Many other tech stocks hit Adobe, like Apple down 1.9% and Salesforce losing 3.4%.

Bank stocks were a bright spot this session, with Goldman Sachs and JPMorgan Chase both up more than 1% each.

Wall Street is trying to regain its footing after a report from the US Department of Labor on Tuesday showed that the consumer price index (CPI) in August rose more than expected. That data sent US stocks selling off on Tuesday, with the Dow Jones Industrial Average falling more. 1,200 points. The gains of Wednesday’s modest rally were wiped out on Thursday’s session.

Economic data released on Thursday failed to do much to bolster investor confidence. Initial jobless claims were better than expected, but import prices fell less than expected. Retail sales beat forecasts, but were negative excluding autos. Manufacturing data also showed a slowing economy.

These statistics show that the consumer sector in the US is holding up well, but that does not help alleviate concerns about persistent inflation. Investors are concerned that the US Federal Reserve (Fed) will have to be more aggressive in raising interest rates to fight inflation, thereby increasing the risk of the economy falling into a recession.

Brent crude oil futures in London fell 3.5%, closing at 90.84 USD/barrel. WTI crude oil futures in New York fell 3.38 USD/barrel, or 3.8%, to 85.1 USD/barrel.

The “culprit” that caused oil prices to slide this session was the USD appreciation and remained at a level not far from the 20-year peak set last week. The greenback is being supported by the expectation that the Fed will continue to raise interest rates sharply.

In addition, oil prices are also under downward pressure from concerns about energy demand. Rising interest rates globally could trigger an economic downturn, dragging on oil demand. This week, the International Energy Agency (IEA) said that oil demand growth will slow and stall in the fourth quarter of this year.

US President Joe Biden has just signed an executive order requiring scrutiny of foreign investments in key sectors such as semiconductors and supply chains due to national security concerns. The order requires the Committee on Foreign Investment in the United States (CFIUS) to review the impact of all foreign investment transactions in certain sectors in order to align them with the Government’s national security priorities. . These priorities include: critical supply chain resilience, technology leadership, cybersecurity, and sensitive personal data.

US President Joe Biden signs an executive order on September 15, 2022

The US President also asked CFIUS to consider foreign transactions in the context of investment trends that may threaten national security, such as the acquisition of many companies in the same industry.

The world gold price fell to the lowest level since April 2020, under pressure from rising US Treasury bond yields and a firm dollar amid investors’ expectations of the US Federal Reserve (Fed). interest rates will increase sharply next week. The price of gold bars in the country this morning (September 16) decreased but did not fully reflect the decrease of the international gold price, making the price difference to nearly 19 million dong/tael.

Closing the Thursday session on the New York market, spot gold “evaporated” $31.7/oz, or down nearly 1.9%, to $1,666.3/oz. At nearly 9 am this morning according to Vietnam time, spot gold price in Asia market increased by 2.6 USD/oz compared to the US closing session, standing at 1,668.9 USD/oz.

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