The Market Is Another Red Day

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2022-11-22 14:27:45

Bitcoin drops below $20,000

Today, US stocks as well as crypto have been volatile. Bitcoin dropped as low as $18,500 and then hovered around $18,900. Altcoins also fell. Total crypto market capitalization also dropped to $997 billion.

Although the news did not affect the market much, crypto still fell. Some argue that the price of BTC fell because of the amount of leverage being liquidated. However, the liquidated leveraged order value was not as high as the previous sharp declines. The decline in prices may be due to the general fear of investors with the economy and the risk of recession.

The price drop caused BTC profit rate to drop to 48.47%, below the good to buy zone (green zone). Historically, this is a good time to accumulate BTC.

In a price zone that is considered good for accumulation (according to BTC profit rate), the price can still continue to fall like 2018. At the same time, the price can stay in this area for a time like a few weeks (March). 2020) or several months (end of 2018). This price zone is an area that long-term investors consider to accumulate, but still need to allocate capital appropriately and follow the principles they have set.

Investors are prepared for the Fed to raise interest rates

US stocks opened the first session of the week down in all three Dow, S&P 500 and Nasdaq indexes. Stock futures also continue to show a downtrend. Oil and gold are no exception, both falling to 85 USD/barrel and 1707 USD/ounce, respectively.

The US saw US bond yields move higher over the past day as investors reacted to strong US economic data as they believe the Fed will continue to raise interest rates. The yield on the benchmark 10-year Treasury note hit a daily high of 3.353%, its highest level since mid-June. The yield on the 30-year Treasury note rose more than 14 basis points to 3,493%, reaching its highest close since 2014. Yields on the 2-year Treasury note rose 10 basis points to 3.505%. Short-term bonds rose to 3.55% last week, reaching their highest level since 2007. Yields move inversely to price and basis point by 0.01%. An increase in public bonds will also affect home and real estate lending rates.

Europe also continues to be more tense because what they fear has happened. Russia claims punitive economic sanctions imposed by the West are the cause of an indefinite halt of gas supplies through Europe’s main pipeline. This is Russia’s way of applying pressure to find a way to force Europe to lift economic measures so that Moscow can return before winter.

“This latest move has significantly increased the risk that Europe may not receive additional gas flows through Nord Stream 1,” analysts at energy consulting firm Rystad Energy said in a research note. all winter”.

Due to the impact of the war between Russia and Ukraine, energy prices in Europe are increasing. Although electricity prices have not skyrocketed because of the policy of some regions, many small companies have had to stop operating because electricity costs are too high. According to estimates by Goldman Sachs, the average European will have to pay up to 500 euros for electricity by 2023.

Other information:

  • Canadian mining company Hut 8 has seen its Bitcoin holdings surpass the 8,000 Bitcoin (BTC) mark as it continues to accumulate self-mining assets despite the falling market. In August alone, Hut 8 mined 375 BTC in the month to bring the total reserve to 8,111 BTC. Hut 8 has also continued to increase mining capacity with the acquisition of Chinese ASIC miners MicroBT. It is expected that they will also buy an additional 1,000 units monthly until the end of 2022.

  • The Bellatrix upgrade preparing Ethereum for consolidation was successfully completed yesterday. This is one of the final steps before Consolidation and allows Ethereum consensus layer clients to perform transactions on the Beacon Chain. However, 5% of validators went offline during the hard fork, which contributed to a 9% missed block rate, according to Martin Köppelmann, co-founder of Gnosis. This led some observers to question the network’s readiness for a massive transition to proof of stake (PoS).

  • Coinshare statistics show that last week digital asset investment products had small inflows totaling $9.2 million. Capital flows mainly into short-term investment products Short Bitcoin. Capital outflows in BTC, ETH and BNB.

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