First Mover Asia: Crypto Prices Rise on Better-Than-Expected U.S. Inflation News

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good morning. Here’s what happens:

Market moves: Bitcoin soared to its highest point in a week; Most of the leading cryptocurrencies have also seen increases.

Technical Takes: Bitcoin The selling appears to be exhausted as buyers attempt to reverse the short-term downtrend.

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

the prices

Bitcoin (BTC): $43,907 + 2.5%

Ether (ETH): $3,369 + 3.7%

markets

Standard & Poor’s 500: $4,726 + 0.2%

DJIA: $36,290 + 0.1%

Nasdaq: $15,188 + 0.2%

Gold: 1826 USD 0.2%

market moves

Bitcoin price chart, last 24 hours.  (CoinDesk)

Bitcoin (BTC) surged to a one-week high, and recovered somewhat after last week’s poor start to the year.

At press time, the largest cryptocurrency was trading at around $43,900, after dropping a few days ago to below $40,000 for the first time since September. Bitcoin is still down 5.2% so far in 2022.

The bitcoin market may have gotten a boost from a US Department of Labor report on Wednesday that showed the Consumer Price Index, a key inflation measure, rose to an annualized clip of 7% in December, the highest level since the early 1980s.

But there were fears in the market that prices could rise faster, which would have put additional pressure on the Federal Reserve to move more aggressively to tighten monetary conditions and cool the economy.

Bitcoin is seen by a growing number of investors as a hedge against rapid inflation, and the price has soared since the Fed began printing money – more than $4 trillion to date – and pursuing ultra-loose monetary policies since the outbreak of the coronavirus in March 2020, sourcing Markets and the economy.

“The market reaction to this new data can be a bit baffling as we see the cryptocurrency markets advance on a winning streak,” Matty Greenspan, founder of cryptocurrency and forex analytics firm Quantum Economics, wrote Wednesday in his newsletter. But this time investors seem to be more relaxed about the Fed.

US stocks closed higher, also due to allaying fears that the Federal Reserve may become more aggressive in tackling inflation, according to Reuters.

In cryptocurrencies outside of bitcoin, the nearby protocol’s NEAR token soared to an all-time high on Wednesday, amid signs that a bullish blockchain may be undervalued as it attracts more activity.

Some analysts have warned that NEAR may look frothy by some metrics, and that bullish bets on another popular blockchain token, Fantom’s FTM, are becoming a “bunked” trade.

Ether (ETH), the original cryptocurrency in the Ethereum blockchain and the second largest total coin, is up 4.2% in the past 24 hours to around $3,370, based on CoinDesk pricing.

take technician

Bitcoin rises above $43,000; Resistance at $45K-$48K

Bitcoin (BTC) buyers held support at around $40,000 as oversold signals appeared on the charts.

The recent bounce indicates that the cryptocurrency is starting to recover after dropping nearly 30% from its all-time high of $69,000 in November.

The Relative Strength Index (RSI) on the four-hour chart is approaching overbought levels, similar to what happened in late December, which preceded the short pullback. However, the RSI on the daily chart continues to rise from oversold levels, which means that buyers can remain active on price dips.

However, given the short-term downtrend, it appears that the upside is limited towards the $45,000-48,000 resistance area. And on the weekly and monthly charts, the momentum signals remain negative, which means that the price rally may be limited for the time being.

important events

2PM HKST/Singapore (6AM UTC) Japan Machine Tool Orders (December Annually)

5pm Hong Kong time / Singapore time (9am UTC) European Central Bank Economic Bulletin

9:30PM HKST/Singapore (1:30PM UTC) US PPI (December/monthly/yearly)

11pm HKST/Singapore (3pm UTC) Federal Reserve Board Member Lyle Brainard’s speech

CoinDesk TV

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

The US economy is experiencing the highest inflation rate in 4 decades, is Bitcoin still a way to hedge against inflation?

“First Movers” hosts Henri Arslanian, leader of PwC Global Crypto, spoke to his analysis of the crypto markets as US consumer price indexes in December rose 7% from a year ago, a four-decade high, and he shares his predictions for cryptocurrency. for 2022. In addition, former SEC Chapter Chair Lisa Braganca shared insights on the current state and prospects for crypto regulation at the Securities and Exchange Commission (SEC).

Latest headlines

NBA Top Shot Bans User ‘FreeHongKong’ The user got banned with little explanation from the site’s support team after trying to cash out.

Solana may become a visa to the world of digital assets: Bank of America: The bank said in a research note that Solana and other blockchains may disrupt market share of Ethereum over time.

Checkout.com raises $1 billion, Eyes Web 3 pushes: Payment processor FTX counts, Coinbase, and Crypto.com among its clients.

Wikipedia faces pressure to stop accepting crypto donations on environmental grounds: A proposal from a contributor has sparked discussions about the ecological footprint of cryptocurrencies, but the institution has not yet made a decision on the issue.

Blockchain Indicator Suggests Bitcoin May Be Close To The Bottom: Bitcoin appears to be undervalued relative to the annual dollar value of the coin’s dormancy.

Prepares readings

Kevin O’Leary’s Guide to Crypto Investing: Wonderful, who owns 32 cryptocurrencies, calls for portfolio diversification.

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

Other sounds: CBDC and stablecoins: early coexistence on an uncertain path

said and heard

“If you bet too much on slight inflation by buying bitcoin at 8:29 am this morning, you have made money by 9 am, which is a risky trade similar to what stock traders often do.” (CoinDesk columnist David Z. Morris) … “The travel rule means that virtual asset providers need to collect and share customer data for transactions that exceed a certain threshold. This is not a radical idea. It simply means that crypto providers must abide by international rules that It ensures the protection of legitimate finance and the prevention of illicit finance.(Marcus Bleier, Deputy Director General at the German Federal Ministry of Finance and Head of the Financial Action Group)

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