Crypto News: Crypto Market for the Week

As the weekend approaches, cryptocurrency investors are grinning once more.

Crypto Assets

The reason is that this week saw the first comeback to positive territory for crypto assets after the previous week’s plunge into negative territory.

The publication of US inflation statistics has reportedly been this week’s most potent “strong medication” for the power of crypto assets.

According to the US Department of Labor, Uncle Sam’s nation recorded an annual inflation rate of 8.5% in July. Evidently, this number is lower than the 8.7% prediction made by analysts. Even more unexpectedly, the inflation rate came out to be declining from the level of 9.1% a month earlier.

Naturally, market participants are content. The Fed, the US central bank, may decide to loosen monetary policy if inflation continues to rise. Naturally, this will enhance investors’ willingness to take on more risk and stay mired in the risky asset market.

Unfortunately, once the US Dollar strengthened near the conclusion of the week, price moves in crypto assets steadily changed course. The incident shows that market participants hurried to factor in US inflation statistics.

Additionally, if you look at the table above, you’ll see that Ethereum (ETH) and Avalanche (AVAX) emerged as the clear winners.

After the network saw a 35% rise in Non-Fungible Token (NFT) trade volume over the course of the week, the value of AVAX surged.

The value of ETH increased after Ethereum engineers declared last Wednesday that they had successfully updated their test network, known as Goerli. They will instantly implement an update, popularly known as The Merge, on the primary Ethereum network if this trial works smoothly.

The Merge was first slated on September 19 by the creators. Later, though, they moved up the date to September 15.

Technical Analysis of BTC

On the technical front, BTC really broke out with a higher volume than usual over the last 21 days. However, because BTC was unable to overcome its barrier of US$24,700, market investors were keen to cash out.

For now, we can see that if BTC succeeds to overcome the resistance level, it actually has the ability to strengthen to the US$25,964 level. If BTC is unable to surpass that level, the nearest daily support levels are US$22,530 and US$21,317.

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