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| By Alex Benfield |
What a week in the crypto markets!
All the craziness in the world today has certainly put a bigger spotlight on cryptocurrencies, and the broad market price action has reflected such.
Most cryptocurrencies are up 10%-20% compared to this time last week, with Bitcoin (BTC, Tech/Adoption Grade “A-”) posting its best daily candle in over a year on Monday.
In fact, BTC is up about 15% over the past seven days. Most of that climb — about 14.5% or roughly $5,000 — was clocked yesterday.
Bitcoin has now smashed through resistance at both the $40,000 and $42,000 levels and is sitting under strong resistance at $45,000. However, there is still a lot of ground to cover before Bitcoin enters bullish territory.
Here’s BTC in U.S. dollar terms via Coinbase (COIN):
Ethereum (ETH, Tech/Adoption Grade “A”) has also climbed just about 15% in the last seven days as it continues to be tightly coupled with its BTC counterpart. Until ETH decouples, it’ll be much harder for the altcoin market to break out and make gains against Bitcoin. If Bitcoin can flip back into bullish territory, expect altcoins to make a run, too.
ETH needs to flip the $3,000 resistance level in the short term, and things will look considerably more bullish for the second largest cryptocurrency after it climbs above $3,400. Until then, expect the recent volatility to continue.
Here’s ETH in U.S. dollar terms via Coinbase:
Notable News, Notes and Tweets
- Fed Chair Jerome Powell made an interesting comment today that there could be room for multiple reserve currencies, a comment that is sure to spark speculation.
What’s Next
The situation in the East has had ripple effects on the Federal Reserve’s plan to raise interest rates and begin quantitative tightening.
Initially, the market had priced in steep rate hikes as most suspected a rate hike of at least 50 basis points would result from the March Federal Open Market Committee meeting. Jerome Powell has now seemingly indicated that a hike of 25 bps at most will be the Fed’s goal in the March meeting.
That would be quite the dovish shift in sentiment. Perhaps the Fed is now realizing the sensitivity of the market. The last thing they want to do is raise rates too quickly triggering a market-wide sell-off.
Narrowing in on crypto, the space has been discussed on some big stages over the past few days as its benefits — like allowing Ukrainian refugees to access funds safely and securely — and its drawbacks — like allowing Russian oligarchs to do the same despite heavy sanctions — are broadcasted to the world.
In regard to the latter, Sen. Elizabeth Warren (D-Mass.) continues her crusade on crypto, calling for an increase in regulation and oversight due to fears of a few bad actors.
While no one is arguing that said bad actors shouldbe able to find a safe haven in crypto, this argument completely glosses over the fact that fiat cash has been and will continue to be the No. 1 way illicit money is transacted anonymously.
At the end of the day, though, any big discussions about crypto is bullish for the space. These conversations bring attention and awareness to the industry, which will eventually lead to further investments in the space.
And history will remember those who have positioned themselves against the paradigm shift that is cryptocurrency.
Things change fast in the world of cryptocurrencies, and at times it can seem like an impossible task to keep up with everything going on in this space. But that’s what we’re here for — to keep you up to date on the events and market moves you need to know.
So, remember to stay tuned to Weiss Crypto Daily for your market updates.
If you’re looking for further market analysis, our Weiss Crypto Investor newsletter is a good place to start. It covers in-depth market analysis using our proprietary Crypto Timing Model and gives you specific “Buy”/“Sell” recommendations for our long-term trading strategy.
You can learn more here.
And we’re currently working on ways to improve our Weiss Crypto Daily content, starting with a few changes to our Sunday Special. So, keep your eye out for further news on that.
Best,
Alex
