First Mover Asia: Bitcoin, Altcoins Climb Following Fed Reserve Chief’s Inflation Reassurances

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good morning. Here’s what happens:

Market moves: Bitcoin led a broad cryptocurrency recovery ahead of the release of the US CPI.

Technical Takes: Buyers are starting to return to the market, although the upside appears to be limited at the $45,000 level.

Watch the latest episodes From CoinDesk TV for insightful interviews with crypto industry leaders and analysis.

the prices

Bitcoin (BTC): $42,806 + 2.4%

Ether (ETH): $3,240 + 5.2%

markets

Standard & Poor’s 500: $4,713 + 0.9%

DJIA: $36252 + 0.5%

Nasdaq: $15153 + 1.4%

Gold: $1,821 + 1.1%

market moves

Bitcoin surged to $4,3106 on Tuesday, sparking a broad market recovery in cryptocurrencies. The move came after the US stock market halted its five-day losing streak ahead of the Consumer Price Index (CPI) data on Wednesday.

At press time, the most valuable cryptocurrency was trading above $42,800, up more than 2% in the past 24 hours, according to CoinDesk data.

(CoinDesk)

Bloomberg reported that the stock market jumped on Tuesday after Jerome Powell, chair of the Federal Reserve, reassured investors that the Fed would combat the current high inflation, a sign that the central bank may cut its balance sheet this year.

As reported by CoinDesk, bitcoin and the broad crypto market have been aggressively acting like risky assets lately.

A major event to watch on Wednesday will be the release of the US Consumer Price Index (CPI) for December. Economists expect the CPI to rise 0.5% monthly to 7.1%.

In the past two months, the price of Bitcoin has seen high volatility after the release of the CPI data. While some cryptocurrency traders and investors view bitcoin as a hedge against inflation, others consider it a risky asset like stocks, which react to tight monetary policy resulting from high inflation.

Most of the other major cryptocurrencies also rose on Tuesday. Ether, the second largest cryptocurrency by market cap, is up more than 5% to over $3,200 at press time. Tier 1 token NEAR remained the biggest winner. It’s up about 13% over the past week despite the cryptocurrency selloff.

take technician

Bitcoin Rise From Oversold Levels, Facing Resistance Near $45K

The daily bitcoin price chart is showing support/resistance, with the RSI at the bottom.  (Damanic Dantes/CoinDesk, TradingView)

Bitcoin (BTC) went to trade above the $40,000 support level and is up nearly 3% in the past 24 hours from 9pm UTC. Buyers have started to return to the market, although the upside appears to be limited to the $45,000 resistance level, which is also close to the 200-day moving average.

On the intraday charts, the bullish momentum is improving, indicating that buyers may remain active in the Asian session.

BTC is the most oversold since December 10, according to the Relative Strength Index (RSI) on the daily chart. Oversold readings usually precede a price recovery, similar to what happened in late September. But this time, the price’s reaction to the RSI and other indicators is delayed.

However, on the weekly chart, the RSI is not yet oversold, reducing the chance of significant buying pressure.

important events

Australian Housing Industry Association New Home Sales (MoM, Dec)

8 a.m. HGT/SGT (12 a.m. UTC): Australia and New Zealand commodity prices (December)

9 a.m. HGT/SGT (1 a.m. UTC): Bank of Japan Governor Haruhiko Kuroda press conference on monetary policy

9:30 AM HGT / SGT (1:30 AM UTC) China CPI (December Monthly/Yearly)

9:30 PM HGT / SGT (1:30 PM UTC) US CPI (December Monthly / Yearly)

CoinDesk TV

In case you missed it, here are the latest episodes of “First Mover” on CoinDesk TV:

Kevin O’Leary at NFT Market and DeFi, Venture Investor Paul Veradittakit in Bitcoin Markets and 2022 Predictions, Are Bitcoin Prices Approaching Low?

The “First Mover” hosts spoke with Kevin O’Leary, aka Mr. Wonderful, for his view on the burgeoning NFT market and the DeFi space. Additionally, investment investor and Pantera Capital partner Paul Veraditaket shared his predictions for cryptocurrency for 2022. In addition, CoinDesk managing editor for global policy and regulation Nikhilesh De shared the latest investigative report on crypto policy under Trump.

Latest headlines

Paradigm and Sequoia invest $1.15 billion in Citadel Securities: This move brings Ken Griffin Castle closer to the cryptocurrency world.

GameFi NFT Marketplace Lootex closes a $9 million funding round: The Taiwan-based asset market features more than 12,000 NFTs across 500 groups.

Unstoppable Domain Launches NFT-Based Login for Ethereum and Polygon: Unstoppable president Matthew Gould said the so-called NFTs can also be used to identify jobs in DeFi or prove membership in communities.

The Mnuchin Files: New documents shed light on Trump-era encryption policy: Jared Kushner has defended behind the scenes a US digital currency, among his revelations in 250 pages of Steven Mnuchin’s tenure at the Treasury.

Axie Infinity’s Sidechain gaming series is larger than many major classes in terms of size: Nansen: If the future of blockchain is multi-chain, Axie’s Ronin is leading the way, according to new research.

Prepares readings

Is Moxie Marlinspike Right About Web 3?: Cryptocurrency may not be as decentralized as its proponents claim.

Today’s coding explanation: What are privacy coins and are they legal?

Other sounds: The Year of NFT: How an Emerging Broker Has Proliferated in 2021 (ARTnews)

said and heard

“We must not be exploited by the metaverse. It must serve us. For that to happen, it needs a constitution.” (Binomial co-founders and tech entrepreneurs Stephanie Hurlburt and Rich Geldrich for CoinDesk) … “However, even multinational companies have a boss: the public. Apple’s privacy push and Facebook’s rebranding show that no matter how big a company is, public opinion Reigns. If the public shows enough appetite for the Metaverse constitution, the hands of the big tech companies will be tied.” (Hurlburt and Geldreich for CoinDesk) … “If we see inflation continuing at high levels longer than expected, if we have to raise interest rates over time, we will. We will use our tools to restore inflation.” (Jerome Powell testifying before the Senate Banking Committee) … “The Fed needs to take seriously the systemic risks to our economic progress, such as cryptocurrencies, stablecoins, and most importantly, climate change.” (Ohio Senator Sherrod Brown at Powell hearing) … “But the most important factor is automation. The inequality that automation is fueling is not the work of God or nature.” (MIT Economist Daron Acemoglu in The New York Times) … “DeSo (formerly BitClout) is in principle a model for what the Web 3 could become. The system is built around the token economics that aims to Helping content creators get paid for their work, and users managing DeSo assets using digital wallets similar to MetaMask or Samourai.” (CoinDesk columnist David Morris)

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